Public sector banks should be better utilised

Government savings schemes yielding better interest-rates should be through banks also There are many Government Savings Schemes yielding better interest-rates than given by banks on Fixed Deposits. But out of these, only two Government Savings Schemes are available in

public-sector banks namely Senior Citizen Saving Scheme (SCSS) and Public Provident Fund (PPF) those two without recently introduced unique facility of Successive Nominations introduced recently in all types of bank-accounts and lockers of both private and public sector banks. But there are several other Government Savings Schemes like Sukanya Samriddhi Yojna, National Savings Certificate, Kisan Vikas Patra, Mahila Samman Savings Certificate and Post Office Monthly Saving Scheme yielding much better interest-rates than Fixed Deposits in Banks which presently are available only in Post Offices.

For better utilisation of vast network of so many public-sector banks, all these Government Savings Schemes namely Sukanya Samriddhi Yojna, National Savings Certificate, Kisan Vikas Patra, Mahila Samman Savings Certificate and Monthly Saving Scheme should be available should be available in all branches of all public-sector banks in the manner Senior Citizen Saving Scheme and Public Provident Fund are available in larger public interest. Banks can then be motivated for bringing more deposits through Government Savings Schemes through awards and otherwise.

Reducing number of post offices require public-sector banks for introducing all Government Savings Schemes

There is a sharp decrease in number of post-offices especially in some specific areas like commercial-hub of Old Delhi with PIN-code 110006. Many post Offices in this area like Chandni Chowk, Dariba, Chawri Bazar etc have been closed making people to rush to General Post Office at Kashmere Gate, Delhi-110006 for their postal needs including for investment in Government Savings Schemes.Therefore, it has become even more necessary to introduce all types of Government Savings Schemes through all branches of public-sector banks. Even RBI bonds issued by Reserve Bank of India should also be available through all branches of all public sector banks.

Counters for LIC of India and general insurance may be

there at all bank-branches  Several public-sector banks have associated with private Insurance Companies to sell their policies which is not a healthy policy when there is a public-sector LIC of India. Every branch of every public-sector bank should have a compulsory affiliation with any of the unit of LIC of India to encourage public sector. Likewise similar compulsory affiliation should be for public-sector Insurance Companies engaged in General Insurance. Idea should be to promote safe and reliable public-sector Insurance Companies accountable to public also through Right-To-Information Act.

Banks can also have counters for booking Speed Post articles on commission-basis

Poor postal-services with diminishing number of post-offices are pushing public especially commercial establishments towards private courier-services. At least spacious bank-branches can have booking-counters for Speed Post articles by postal-department paying some commission on booked Speed Post articles. Postal Department will be benefitted through reduced work-load and extra revenue-earning while public will be benefitted by having nearer facility for the purpose. Banks will not be at loss because they will be getting commission from postal-department on booked articles.

Successive nominations should be introduced in all Government Savings Schemes

Taking clue from unique phenomenon of Successive Nominations in LIC of India, Government of India notified through Gazette of India dated 15.04.2025, Banking Laws Amendment Act 2025 where its sections 10 to 13 allowed welcome feature of up to four Successive Nominations in all accounts and lockers of the banks in private and public sector. This feature is very useful in case the only one nominee nominated dies before the death of the account holder. Now it will make second nominee to become nominee and so on up to four successive nominees without any need of account-holder approaching the bank for change in nominee. This facility needs to be implemented in all types of Government Savings Schemes also.All branches of public-sector

banks should have facility to open DEMAT accounts with facility of Successive Nominations

Likewise at least select branches, if not all, should have facility of DEMAT accounts with Successive Nominations. It is indeed regretting that Security and Exchange Board of India (SEBI) is reluctant to introduce Successive Nominations in DEMAT accounts despite heavy public demand of investors in shares. Even two out of four entities from which SEBI sought comments favoured introducing Successive Nominations in DEMAT accounts.

Successive Nominations should also be compulsory in deposits made in private firms/companies

It is high time that Successive Nominations may be made compulsory in all deposits made in private firms/companies etc. A copy of such nomination-forms should be compulsorily attached with audit-reports of the assesse companies. Income Tax Return Forms should include column for undertaking by assesse-firms about nomination-forms having been taken from depositors in those firms. Such a system will in addition safeguard deposits made by depositors in private firms and companies. Such nomination-forms must also be made compulsory for existing deposits in private companies/firms etc.

Successive Nominations will reduce court-cases and spent on time & money in litigation

Phenomenon of Successive Nominations if made compulsory in all types of deposits including also in DEMAT accounts, Government savings schemes and deposits in private firms/companies etc (already introduced for bank-accounts) will drastically reduce number of court-cases in our presently over-burdened judicial system. It will save unnecessary huge spent of time, money and resources on litigations to claim money by depositors.

New legislation/s may be there if needed for Successive Nominations in accounts other than in banks

In case fresh legislation is required for introducing Successive Nominations in DEMAT accounts, government-savings-schemes and deposits made in private companies/firms etc, then it should be done for ensuring phenomenon of Successive Nominations in all types of deposits. It will be in interest of all concerned including pubic-authorities also because of saving of man-hours being spent in fulfilling formalities of change in nominees in case of death of nominee.

Apprehensions against system of Successive Nominations not justified

Practical problems in isolated cases should not prevent a more user-friendly system to be implemented in larger public-interest. There may be rarest of rare cases where the first nominee may be unable to get money because of serious problem like dementia.

Non-availability of First Nominee due to such reason can be there even in present system. However option can be given to the depositor to either switch over to new system of Successive Nominations. Or else the depositor can continue with old system of nominations whereby different nominees can be assigned percentage of funds/assets (shares) left by the deceased.

As regards difference between “Nominee” and “Legal Heir” is concerned, it is the well-settled law that a nominee is only a trustee both in case of Successive Nominations and in earlier system.  It is for the depositor to trust the person/s to act as a trustee of his funds/assets in case of his/her death.Banks or others concerned with deposited money/assets cannot and must not be made to own responsibility that legal heirs may get money/assets (shares) etc from the nominees.

Writer is Guinness World Record Holder for writing most letters and RTI Consultant; views are personal