Bank Nomination: Name Up to 4 People, Save a Fight

Most bank accounts in India have no nominee, or a nominee named years ago who is no longer the right person. The family finds out only after a death, when the bank asks for papers nobody has ready. A ten-minute form today prevents that delay. Quick Answer: Since 1 November 2025, you can name up to four nominees on a bank deposit, either together with shares totalling 100%, or in sequence. A nominee receives money as trustee for legal heirs, not automatically as owner. With a valid nominee, banks must settle claims within 15 calendar days of complete documents.

A nominee is a receiver, not automatically the owner

This is the single most misunderstood point in Indian banking, and it causes family disputes. A nominee is the person the bank can safely pay. That payment discharges the bank's liability. It does not, by itself, decide who ultimately owns the money. Ownership follows the will, if there is one, and otherwise the law of succession that applies to the family. The nominee holds the money as a trustee for the legal heirs. That is why the RBI's directions require the bank to tell the nominee, in writing, that the payment is made as trustee and does not affect any claim against the nominee. Naming a nominee makes the claim fast. It does not replace a will, and it should not be used to try to disinherit a legal heir.

Up to 4 nominees: simultaneous or successive

The Banking Laws (Amendment) Act, 2025, and the Banking Companies (Nomination) Rules, 2025, both effective from 1 November 2025, allow up to four nominees on deposit accounts. For lockers and safe-custody articles, the successive form applies. Banks must now tell you about the nomination facility when you open an account and offer it to you; if you decline, the bank records a written declaration to that effect. Simultaneous nomination: name up to four people at once and give each a percentage share. The shares must add up to 100%. If one simultaneous nominee dies before receiving the deposit, only that nominee's share becomes ineffective, and that share is then dealt with under the rules for accounts without a nominee. Successive nomination: name up to four people in a priority order. The next nominee becomes effective only after the death of every nominee named earlier in the order. This suits a chain — for example, a spouse first, then a parent, then a sibling — where you want one person to claim at a time.

Worked example: splitting ₹12 lakh three ways

Take Ramesh, who has ₹12 lakh in a single savings account and wants his wife, his mother and his brother to be able to claim without a court process. Under simultaneous nomination, he could split it 50%, 30% and 20%. That gives ₹6,00,000 to his wife, ₹3,60,000 to his mother and ₹2,40,000 to his brother — shares that add up to exactly 100% and to the full ₹12 lakh. The bank pays each nominee their share on the claim documents. Those nominees still hold the money as trustees for the legal heirs, so the split is a claim route, not a final division of an estate. If Ramesh instead wanted one person to claim first and others only as backups, successive nomination in priority order would be the right form, not a percentage split.

No nominee? The simplified route

Without a nominee, claims up to ₹15 lakh at commercial banks (₹5 lakh at co-operative banks, higher if the bank sets it) use a simplified procedure when there is no will, dispute or court order; above that, court documents may be needed. The 15-day clock runs from complete documents, not the first branch visit. If the bank refuses a nominee claim, asks for a succession certificate despite a valid nominee, or misses the timeline, complain in writing first, then escalate to the RBI Ombudsman via cms.rbi.org.in or 14448 after 30 days or an unsatisfactory reply.

What the family must file — and what the bank cannot demand

With a valid nominee or a survivorship clause, the bank should ask for only three things: its claim form, the death certificate, and the nominee's or survivor's identity and address proof. It cannot demand a succession certificate, probate, letter of administration, indemnity bond or no-objection letters from other relatives, whatever the balance, in a nominee or survivorship case.

The 15-day rule, and what delay costs the bank

Example: a ₹4,20,000 claim settled 40 days late at a 6.5% Bank Rate (10.5% with the 4% addition) gives ₹4,20,000 × 10.5% × 40 ÷ 365 = ₹4,832.88, roughly ₹4,833 — an illustration at a stated rate, not a promise. Keep a dated copy of every document submitted. Under the RBI (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025, notified on 26 September 2025 and to be implemented by banks by 31 March 2026, a bank must settle a deposit claim within 15 calendar days of receiving all required documents. If delay is attributable to the bank, it must pay compensation at a rate not less than the prevailing Bank Rate plus 4% a year on the amount due, for the period of delay. For lockers and safe-custody articles, the compensation is ₹5,000 for each day of delay beyond the timeline.

How to add or change a nominee today

Open each account's nomination section in your bank's app or branch form, and check who, if anyone, is currently named. Decide simultaneous or successive, and check that simultaneous shares add up to exactly 100%. For a joint account, confirm the survivorship instruction as well as the nominee, and remember the nominee's right normally starts only after all holders have died. Submit the form, keep the acknowledgement, and tell the nominee where the acknowledgement is kept. A nominee who does not know they are nominated cannot claim quickly. Re-check after a marriage, divorce, birth or death in the family, and after opening any new account. An outdated nominee is a common cause of exactly the dispute nomination is meant to avoid.

Educational content only — not financial advice. Consult a SEBI-registered investment adviser for personal guidance; investments are subject to market risk. This article is general information, not legal advice; consult a lawyer for succession and will questions. Sources: Banking Laws (Amendment) Act, 2025 and Banking Companies (Nomination) Rules, 2025, effective 1 November 2025; RBI (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025, notified 26 September 2025, implementation by 31 March 2026; RBI Integrated Ombudsman Scheme, 2026 — cms.rbi.org.in, 14448.