From November 1, bank account holders can appoint up to four nominees for deposit accounts and safe-custody locker and specify the share for each. It will simplify the post-death asset transfer and reduce the risk of unclaimed funds.
The account holder has full discretion to add, change, or cancel nominations anytime. However, for joint accounts, all holders must agree to changes, ensuring transparency. The changes will be made in writing, acknowledged by the bank, and updated across linked accounts. This will help avoid future disputes and ensure that the nomination reflects the customer’s current intent with clarity and control.
If a sole nominee predeceased the account holder, the earlier regime risked complication or unclaimed deposits. Multiple nominees will mitigate that. In fact, financial products such as mutual funds, life insurance, National Pension System, Employees’ Provident Fund allow multiple nominees.
Adhil Shetty, CEO, BankBazaar, said multiple nominees will enhance transparency in claim settlements and reduce the likelihood of disputes that often arise when only one nominee is there. “For customers, this translates to clearer succession, smoother transfers, and less legal friction for heirs,” he said.
As per the Reserve Bank of India’s guidelines, banks must settle claims of deceased customers within 15 days. They cannot insist on succession certificates, probate, or bonds of indemnity when a valid nominee or survivor clause exists.
However, in cases without a nominee or Will, claims up to Rs 15 lakh (Rs 5 lakh for co-operative banks) can still be processed through a simplified procedure — requiring only a death certificate, ID proof, and an indemnity bond from the claimant.
Rightful heirs
When an account holder dies, the nominee notifies the bank of the death, furnishes the required documentation such as death certificate, identity proof and claims the funds in the savings account, fixed deposit, or other nominated asset.
Vishnu Chundi, founder and CEO, AasaanWill, an online will writing platform, says the ultimate entitlement of the asset is governed by the applicable succession laws or a Will, if one exists. “This emphasises the value of having the nomination aligned with a Will or broader estate plan because the nominee function alone does not substitute for succession planning,” he explained.
If there is no nomination
The central bank has underlined that a prospective customer cannot be denied or subjected to delays in opening an account solely on the ground of refusal to make a nomination, provided all other requirements for account opening are satisfactorily met.
In case the account holder dies without any nomination, the bank will follow a standardised process under the RBI’s claim-settlement framework. If a valid Will exists, banks release the funds to the executor or the beneficiary named in the Will — particularly when it is registered or probated. In such cases, a legal heir certificate is not required, as the Will itself serves as conclusive proof of the depositor’s intentions.