A nominee is the person who receives the money in your bank account, fixed deposit or locker if something happens to you. Without a nominee, families often have to go through long paperwork to claim funds. New rules now allow more flexibility. Here is a guide.
What changed
The Banking Laws (Amendment) Act, 2025 amended banking laws to allow customers to name up to four nominees for deposit accounts. The government notified the nomination provisions to take effect from 1 November 2025.
Types of nomination
- Simultaneous nomination: you name up to four nominees and specify the share of each, such as 40, 30, 20 and 10 percent. The total must be 100 percent. This option is for deposit accounts.
- Successive nomination: nominees are named in order of priority. If the first nominee is not alive, the next one becomes eligible, and so on.
- For safe deposit lockers and articles in safe custody, only successive nomination is allowed.
Who can be a nominee
- Any individual, including a family member or friend.
- A minor can be a nominee, with a guardian named to receive funds on the minor’s behalf.
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Nominee vs legal heir
A nominee is the person the bank pays the money to. This gives the bank a valid discharge. However, the Supreme Court has held in several cases that a nominee is not automatically the final owner of the money. The legal heirs, under a will or succession law, can claim it from the nominee. So, it is wise to:
- Make a nomination for every account.
- Also write a will, especially for larger assets.
- Keep nominations consistent with your will.
How to add or update a nominee
- Log in to net banking or the mobile app and look for the nomination option.
- Or visit your branch and fill the nomination form.
- Enter the name, relationship, date of birth and share of each nominee.
- Submit and keep the acknowledgement.
You can change or cancel nominations at any time.
Other investments
- Demat accounts and mutual funds also allow multiple nominees under SEBI rules.
- Insurance policies, EPF, PPF and post office schemes have their own nomination forms.
Check each account and investment to make sure a nominee is registered.
Unclaimed money
Lack of nominations is one reason why large amounts sit as unclaimed deposits in banks. The RBI’s UDGAM portal helps families search for such deposits.
Bottom line
You can now name up to four nominees for your bank deposits. Update nominations across all accounts and pair them with a will to protect your family.
Source / स्रोत: Ministry of Finance, Department of Financial Services, Reserve Bank of India, Press Information Bureau
