Introduction
The Nomination Facility is one of the most important banking features that helps families during difficult times. It ensures that, in case of the death of an account holder, locker holder, or person keeping articles in safe custody, the rightful nominee can quickly and easily claim the assets without unnecessary delays or legal complications.
In this article, we will explain in simple terms the purpose, legal provisions, rules, and step-by-step procedures for availing of the nomination facility under the new RBI and Banking Regulation Act amendments (2025).
1. Purpose of Nomination Facility
The main purpose of the Nomination Facility is to help in the speedy settlement of claims after the death of a bank customer. It reduces the hardship faced by family members of the deceased and allows them to get access to deposits, locker contents, or safe custody articles without lengthy legal procedures.
In short, nomination ensures that your hard-earned money and belongings reach your loved ones easily.
2. Legal Provisions
The nomination rules are based on the following legal updates:
- Reserve Bank of India (Nomination Facility in Deposit Accounts, Safe Deposit Lockers and Articles in Safe Custody with Banks) Directions, 2025
- Banking Laws (Amendment) Act, 2025, which amends sections 45ZA, 45ZC, and 45ZE of the Banking Regulation Act, 1949.
- Banking Companies (Nomination) Rules, 2025, effective from November 1, 2025.
These new provisions bring more clarity, flexibility, and digital options for customers.
3. Rules for Nomination
The nomination facility is available for:
- All deposit accounts (Savings, Current, Term Deposits)
- Safe Deposit Lockers
- Articles kept in Safe Custody
- Deposits in the name of a sole proprietorship
However, nomination can only be made in an individual capacity, not on behalf of organizations, trusts, or societies.
Types of Nomination
There are two types of nomination available under the new rules:
A. Successive Nomination
In successive nomination, you can name more than one nominee in a particular order of priority.
- The first nominee will receive the money if he/she is alive.
- If the first nominee is not alive, then the second nominee becomes eligible.
- The same rule applies to further nominees in the given order.
If no order is mentioned, nominees are treated in the order their names appear in the form.
Example:
You nominate your spouse first, and your child second. If both you and your spouse pass away, your child will automatically become eligible to claim the amount.
B. Simultaneous Nomination
Here, you can nominate up to four people at once, and specify what percentage of your deposit each person should get.
For example:
- Nominee 1: 40%
- Nominee 2: 30%
- Nominee 3: 30%
If any nominee dies before receiving the amount, their share will be settled as per RBI’s deceased claim guidelines.
Note: Simultaneous nomination is not allowed for lockers or safe custody articles — only successive nomination is permitted for those.
Important Points about Nomination
- Only individuals can be nominees (not companies, trusts, or societies).
- In joint accounts, the nominee gets rights only after the death of all depositors.
- If the nominee is a minor, the depositor can appoint another adult to receive the amount on behalf of the minor.
- You can change or cancel your nomination anytime.
- The latest nomination will automatically cancel the previous one.
- Renewal of a deposit does not cancel an existing nomination.
4. Nomination for Different Types of Accounts
A. Deposit Accounts
Separate nominations are needed for each account, even if all accounts belong to the same person.
B. Pension Accounts
Nomination for receiving pension arrears under government rules is different from bank account nomination. Pensioners must submit a separate nomination form for their bank account.
C. Safe Custody Articles
Nomination is allowed only for individuals (not joint deposits). Up to four nominees can be appointed successively.
D. Safe Deposit Lockers
Lockers can have nominations in favour of up to four individuals.
If the locker is jointly hired, access is given to the surviving hirers and nominee(s) after the death of one hirer.
5. Witness in Nomination Form
If a customer uses a thumb impression in the nomination form, it must be attested by two witnesses.
However, if the form is signed (not thumb-impressed), no witness is required.
6. Acknowledgement of Nomination
Banks must provide a written acknowledgement for registration, cancellation, or variation of nomination within three working days of receiving the form.
If a nomination request is rejected, the bank must inform the customer in writing, explaining the reason for rejection within three working days.
Also read-Jeevan Pramaan: Digital Life Certificate for Pensioners – A Complete Guide
7. Storage and Record of Nomination Forms
- Banks are required to upload the nomination form in their internal digital system.
- The physical copy is stored at the Linked Central Processing Centre (LCPC) for verification and recordkeeping.
- These forms are stored digitally in the Electronic Document Management System (EDMS) for easy access when required.
8. Indication of Nomination on Passbook or Statement
Whenever a nomination is registered, the bank will print a “Nomination Registered” message on the passbook or account statement.
The name of the nominee(s) may also be displayed as per RBI’s instructions.
9. Customers Not Opting for Nomination
- Customers will be informed about the benefits of nomination at the time of account opening.
- If a customer chooses not to opt for nomination, the bank will open the account after obtaining a written declaration confirming their choice.
- Account opening cannot be denied just because the customer refused to nominate anyone.
10. Procedure and Digital Process
Nomination can be done:
- In the branch, or
- Online through digital channels like YONO or Internet Banking (INB) (new features rolling out from November 2025).
Customers submitting physical forms will receive an acknowledgement, and the nomination details will later be updated in the bank’s system.
11. Do’s and Don’ts of Nomination Facility
Do’s
- Encourage all account holders to register nominations.
- Verify customer signatures while accepting nomination forms.
- Follow standard operating procedures before giving acknowledgements.
- Provide acknowledgement within 3 working days.
- Inform customers in writing if a nomination request is rejected.
- Send forms to the correct department (LCPC) for recordkeeping.
Don’ts
- Do not accept nominations in favour of non-individuals like trusts or organizations.
- Do not refuse to open an account just because the customer did not want to nominate.
- Always obtain a written declaration if the customer declines to nominate.
Conclusion
The Nomination Facility is a simple yet powerful feature that every bank customer should use. It ensures that your family can easily access your money, locker, or valuables after your lifetime — without facing unnecessary delays or legal hurdles.
With the new RBI and Government rules effective from November 1, 2025, the nomination process has become clearer, faster, and more digital-friendly.
So, if you haven’t yet registered a nominee for your bank accounts or locker, it’s time to do it now — and secure peace of mind for yourself and your loved ones.