Overview

(Nomination Facility in Deposit Accounts, Safe Deposit Lockers and Articles kept in Safe Custody with the Banks) Directions, 2025 

The nomination facility is intended to facilitate expeditious settlement of claims upon death of a customer and to minimise hardship faced by the family members. With reference to RBI circular RBI/2025-26/95 DOR.MCS.REC.59/01.01.003/2025-26 Dated October 28, 2025,  and Banking Laws (Amendment) Act, 2025, depositors has the flexibility to make nominations as per their preference, allow Multiple Nominations (up to 4), ensuring uniformity, transparency, and efficiency in claim settlement.

Nomination is a provision which allows the Depositor or all the Depositors together to nominate one or more persons not exceeding four either successively or simultaneously  to whom in the event of the death of the sole depositor or the death of all the depositors, the amount of deposit may be returned.

Benefits of Nomination

• Faster processing and settlement of deceased Claim
• Simplified Documentation
• Avoid Legal Complications
• Financial Security for dependents

• Multiple Nominations: Customers may nominate up to four persons, either simultaneously or successively, thereby simplifying claim settlement for depositors and their nominees.
• Nomination for Deposit Accounts: Depositors may opt for simultaneous or successive nominations, as per their preference.
• Nomination for Articles in Safe Custody and Safety Lockers: For such facilities, only successive nominations are permitted.
• Simultaneous Nomination: Depositors may nominate up to four persons and specify the share or percentage of entitlement for each nominee, ensuring that the total equals 100 percent and enabling transparent distribution amongst all nominees.
• Successive Nomination: Individuals maintaining deposits, articles in safe custody, or lockers may specify up to four nominees, where the next nominee becomes operative only upon the death of the nominee placed higher, ensuring continuity in settlement and clarity of succession.
• Depositor can either do Successive Nomination or Simultaneous Nomination and NOT both.

Simultaneous vs Successive Nomination

• The nomination shall be made only in respect of deposits which are held in the individual capacity of the depositor and not in any representative capacity as the holder of an office or otherwise.
• Nomination is applicable for Deposit Accounts and Sole Proprietorship Accounts.
• Wherever Deposit Account/Locker is held in joint capacity Nomination Form should be signed by all the account holders irrespective of the Mode of Operations (MOP) for availing Nomination facility
• Where the nominee is a minor, the depositor or, as the case may be, all the depositors together, may, while making the nomination, appoint another individual not being a minor, to receive the amount of the deposit on behalf of the nominee in the event of the death of the depositor or, as the case may be, all the depositors during the minority of the nominee.
• In the case of a deposit made in the name of a minor, the nomination shall be made by an individual lawfully entitled to act on behalf of the minor
• While Nomination is an option at the time of Account opening, Customers may opt for Nomination considering the benefits and advantages , in case customer opts out a written declaration would be required that he does not require Nomination.
• Where a nomination request is found not to be in conformity with the provisions of the Act or the Rules and is consequently rejected, the bank shall inform the customer in writing, clearly indicating the reasons for such rejection, within three working days of the receipt of the request form.