1. PURPOSE:

The Nomination Facility is intended to facilitate expeditious settlement of claims in the accounts of deceased depositors/Safe custody articles/ locker-holders and to minimize hardship caused to the family members on the death of the depositors/Safe custody articles/ locker holders.

2. LEGAL PROVISIONS:

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

The Government of India has notified the Banking Laws (Amendment) Act, 2025 which inter-alia has amended the Sections 45ZA, 45ZC and 45ZE of the Banking Regulation Act, 1949 (the Act). The Banking Companies (Nomination) Rules, 2025 have also been notified which along with amended provisions of the Act shall come into force from November 1, 2025. Accordingly, in order to align the regulatory instructions with the amended provisions of the Banking Regulation Act, 1949 and corresponding Nomination Rules, it has been decided to review the extant instructions on the subject.

3. RULES FOR NOMINATION

Nomination Facility is available on all deposit accounts, safe deposit locker / safe custody article and deposits held in the name of sole proprietary concern. Nominations are made only in respect of deposits which is held in individual capacity of the depositor and not in any representative capacity as a holder of an office or otherwise. Thus, for instance, a nomination cannot be made in a HUF account.

Successive or Simultaneous nomination has been introduced.

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