The Reserve Bank of India (RBI) has announced new guidelines for nomination facilities related to bank accounts, safe deposit lockers, and safe custody items.
These rules will come into effect from November 1, 2025.
Under the new system, all banks, including cooperative and rural banks, must provide nomination options to their customers.
However, if a customer wishes not to nominate anyone, they can submit a written declaration stating their decision.
Importantly, banks cannot delay opening an account just because a customer chooses not to make a nomination.
Key Details of the New Nomination Process
According to the RBI, banks must issue a receipt for the nomination form within three working days of receiving it.
They should also mark “Nomination Registered” on the passbook or term deposit receipt. The nominee’s name must be recorded in the bank’s system for transparency.
Customers will be allowed to register, cancel, or modify their nominations at any time, and banks must provide written proof for each change.
If a bank rejects a nomination, it must inform the customer in writing within three working days.
In cases where multiple nominees are listed and one of them passes away before receiving the funds, that person’s nomination will be automatically cancelled.
These new rules align with RBI’s earlier guideline that claims of deceased customers must be settled within 15 days.
If there is a valid nomination or survivorship clause, banks can directly release the funds to the nominee or legal heir after the account holder’s death.
