What changed
RBI received queries from banks about witness requirements on nomination forms. It has now clarified that only thumb impressions on forms DA1-DA3, SC1-SC3, and SL1-SL3A must be attested by two witnesses. Signatures of account holders do not require any witness attestation.
What it means for you
This reduces paperwork and operational burden for urban co-operative banks when processing nominations. Banks can now accept signature-only nominations without arranging witnesses, speeding up customer service. However, strict compliance is expected for thumb impression cases to prevent fraud.
What you must do
- Update internal procedures to ensure only thumb impressions on nomination forms are attested by two witnesses.
- Train branch staff on the distinction between signature and thumb impression witness requirements.
- Review existing nomination forms and processes to align with this clarification.
- Communicate the change to all branches and compliance teams.
Who it affects
Primary (Urban) Co-operative Banks, Bank branch staff handling nomination forms, Customers opening deposits, safe custody, or locker facilities
Which nomination forms are covered by this clarification?
Forms DA1, DA2, DA3 for bank deposits; SC1, SC2, SC3 for safe custody articles; and SL1, SL1A, SL2, SL3, SL3A for safety lockers.
Do signatures on nomination forms need witness attestation?
No, only thumb impressions require attestation by two witnesses. Signatures alone do not need any witness.
What is the legal basis for these nomination rules?
The Co-operative Banks (Nomination) Rules, 1985 are framed under Section 52 read with Sections 45-ZA, 45-ZC, 45-ZE and 56 of the Banking Regulation Act, 1949.