What changed
RBI clarified that for nomination forms (DA1-DA3 for deposits, SC1-SC3 for safe custody, SL1-SL3A for lockers) under the 1985 Rules, only thumb impressions must be attested by two witnesses. Signatures of account holders no longer require witness attestation.
What it means for you
This reduces documentation burden for co-operative banks and their customers when filling nomination forms. Banks must update their internal procedures and staff training to ensure only thumb impressions are witnessed, not signatures. Non-compliance could lead to regulatory scrutiny.
What you must do
- Update nomination form processing guidelines to require witness attestation only for thumb impressions, not signatures.
- Train branch staff and compliance teams on this clarification to avoid incorrect rejections or demands for witness signatures.
- Review existing nomination forms and procedures to ensure alignment with the clarified rules.
- Communicate the change to customers to streamline nomination submissions.
Who it affects
State and Central Co-operative Banks, Branch staff handling nomination forms, Compliance officers at co-operative banks, Customers of co-operative banks using nomination facilities
Which nomination forms are covered by this clarification?
Forms DA1, DA2, DA3 for bank deposits; SC1, SC2, SC3 for articles in safe custody; and SL1, SL1A, SL2, SL3, SL3A for safety lockers, as prescribed under the Co-operative Banks (Nomination) Rules, 1985.
Do signatures on nomination forms need to be attested by witnesses?
No. Only thumb impressions require attestation by two witnesses. Signatures of account holders do not need witness attestation.
What is the legal basis for these nomination rules?
The rules are framed under Section 52 read with Sections 45-ZA, 45-ZC, 45-ZE and 56 of the Banking Regulation Act, 1949.