The Reserve Bank of India (RBI) has made nomination facilities mandatory for all bank accounts, lockers, and safe custody items starting November 1, 2025. While customers can opt-out via written declaration, banks cannot delay account opening based on this choice.
Key Takeaways
- Mandatory nomination option for all bank accounts and lockers from November 1, 2025
- Customers can opt-out via written declaration without account opening delays
- Banks must provide nomination receipts within 3 working days
- Nomination details must be recorded in passbooks and account statements
- Multiple nominee rules clarified with automatic termination provisions
Receipt and Record-Keeping Requirements
Banks must issue receipts for nomination forms within three working days. The phrase ‘Nomination Registered’ must appear in passbooks or term deposit receipts, with nominee names recorded in account details for transparency.
Customer Rights and Modification Process
Account holders can register, cancel, or modify nominations anytime. Banks must provide written acknowledgment for changes. If a nomination is refused, banks must explain the reason in writing within three working days.
Multiple Nominee Rules and Claim Settlement
RBI clarified that if multiple nominees are designated and one dies before receiving funds, that nomination automatically terminates. This aligns with existing rules requiring settlement of deceased account holder claims within 15 days. With valid nomination, banks can directly release funds to nominees or legal heirs.
Impact and Compliance
The new guidelines aim to ensure smooth transfer of assets to intended beneficiaries, reducing delays and disputes after an account holder’s death. All banks must strictly comply to maintain accountability and protect customer interests.
