Banking Regulation Act, 1949 — back to Table of Contents
Section 45ZB. Notice of claims of other persons regarding deposits not receivable
A banking company is not required to receive, or be bound by, notice of a claim from anyone other than the person or persons in whose name a deposit is held — even if such notice is expressly given to it.
The exception is where a decree, order, certificate or other authority from a court of competent jurisdiction relating to the deposit is produced before the bank; in that case, the bank must take due note of it.
In practice, this means a bank can safely disregard informal third-party claims over a deposit account, and is only obliged to act once a competent court has actually intervened.
Note: Part IIIB was inserted by the Banking Companies (Second Amendment) Act, 1960.
