Can deposits - transferred from funds in an account held in joint names - exist in single name and without nomination? While not many would give it a second thought, cross section of bankers that BusinessLine spoke to admitted that "the mistake would have to be rectified".

Consider this: You open a savings plus account ((which is a savings bank account linked to Multi Option Deposit Scheme (MODs), whereby the account holder (that is you) can earn higher interest than what an SB account would fetch)) in joint name (EorS). You fix a threshold limit, so the funds beyond the specified limit are automatically transferred to the savings plus account.

The bank will seek nomination details from you when you open the savings plus account.

A good number of customers are probably in the know of this up to this point.

Now, when funds in excess of the threshold limit are subsequently transferred to MODs, the deposits, as K Kathirmathiyon, a retired SBI staff points out exists only in single name and without nomination details.

Questioning the bank’s discretion in opening the deposit account in single name, Kathir said: “the bank in almost all correspondence and advertisements asks customers to furnish nominee details, but has failed to do so when transfers are effected to MODs.

“When there is sweep of funds from a joint account, how can the deposit remain in single name and without nomination details? This could be a software related issue, but even bank officials are not in the know of such a mistake.''

Urging customers to understand the implication of having such funds in single name and without nomination, he said: “as on date several MODs are opened on various occasions totalling over Rs 5 lakh – all in single name from out of the funds held jointly.”

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