117. Amendment of section 4.
In section 4 of the principal Act,––
(a) for sub-section (1), the following sub-section shall be substituted, namely:––
“(1) The depositors shall designate one or more individuals, as nominee or nominees, who shall be entitled, in the event of the death of the depositor of a single account, or all the depositors of a joint account, as the case may be, to receive the sum due, as an owner or a trustee, and to the extent, as may be specified by the depositor at the time of making nomination:
Provided that if the depositor is a minor or a person of unsound mind, the nominee shall be designated by the guardian.”;
(b) after sub-section (3), the following sub-section shall be inserted, namely:––
“(4) The transfer of deposit, if permitted under a Savings Scheme, shall automatically cancel a nomination previously made.”.
Notes on Clauses:
Clause 117 of the Bill seeks to substitute sub-section (1) of section 4 of the Act to give the depositor the right to specify whether the nominee shall get the specified amount in respect of a deceased's account as an owner or as a trustee. It further provides to insert a new sub-section (4) to provide for cancellation of nomination in case of transfer of deposits.
