Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has instructed non-banking financial institutions (NBFIs) to repay deposited money to the nominees after death of the depositors.
The Bangladesh Bank (BB), the country’s central bank, issued a notification in this connection on Monday, asking the managing directors and chief executive officers of all NBFIs to follow the instructions for making payment to the nominee/nominees after the demise of depositor/depositors properly.
Talking to BBN, a BB senior official said the central bank has issued the notification after receiving allegations that some NBFIs had sought document of the BB, if any, from the nominees of the depositors.
“We’ve clarified our position regarding the matter through issuing the notification,” the central banker explained.
Under the provisions, the depositors are empowered to nominate other person/persons as nominee/nominees anytime after cancelation of the previous nominee/nominees.
The depositors may also specify the persons who will receive the money after their death in the case of minor nominee/nominees, according to the notification.
Currently, 33 NBFIs are running their business across the country.
On the other hand, the BB instructed the commercial banks on April 19 this year to follow the Banking Companies Act (BCA) 1991 (amended up to 2013) duly for repaying deposited money to the nominees after death of the depositors.
The central bank had issued the notification after receiving allegations that some banks were collecting undertakings from the nominees of the depositors.
The undertakings state that the nominees might not be considered eligible recipients of the deposit in case of the depositors’ death, which is a violation of the instruction as mentioned in Section 103 of the Act.