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      Question

      The newly inserted Section 45ZG (by the Banking Laws

      (Amendment) Act, 2025) deals with the priority of successive nominations. Where nominations are made successively, the nomination of the second nominee becomes effective:
      A Immediately upon registration of the nomination Correct Answer Incorrect Answer
      B Only after the death of the first nominee Correct Answer Incorrect Answer
      C Only with the prior approval of the Reserve Bank Correct Answer Incorrect Answer
      D Only if the first nominee renounces in writing Correct Answer Incorrect Answer
      E Simultaneously with the first nominee in equal shares Correct Answer Incorrect Answer

      Solution

      Section 45ZG, inserted with effect from 1 November 2025, governs the priority of successive nominations under Sections 45ZA, 45ZC and 45ZE. It provides that the first nominee’s nomination is effective if that nominee survives the person who made the nomination; the second nominee’s nomination becomes effective only after the death of the first nominee; and any lower-ranked nominee’s nomination becomes effective only after the death of all nominees higher in order. Where the order is not mentioned, persons are deemed nominated in the order in which their names appear. This successive-priority framework does not apply to simultaneous nominations made under Section 45ZA(1).

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