Planning, worked examples and checklists
Bank nomination rules 2026: up to four nominees, simultaneous or successive
Up to four bank nominees since 1 November 2025: simultaneous or successive nomination, lockers, what a nominee gets and worked examples.
Since 1 November 2025, you can name up to four nominees for a bank deposit account. The Banking Laws (Amendment) Act, 2025 amended sections 45ZA to 45ZG of the Banking Regulation Act, 1949, and the Banking Companies (Nomination) Rules, 2025 came into force on the same day. For deposits, you can nominate people simultaneously, each for a fixed percentage that adds up to 100%, or successively, in an order of priority. For lockers and articles in safe custody, only successive nomination is allowed. The nominee collects quickly with a claim form, a death certificate and ID, but RBI's rules say the nominee receives the money as a trustee of the legal heirs, so nomination does not change who ultimately owns it.
This guide is part of the estate planning checklist.
Simultaneous vs successive nomination
| Simultaneous | Successive | |
|---|---|---|
| Available for | Deposit accounts | Deposit accounts, lockers, safe custody articles |
| How it works | All nominees are entitled at once, each to a stated share | Only the first surviving nominee in the order is entitled |
| What you must state | The percentage for each nominee, covering the whole deposit and adding to 100% | The order of priority (if you do not, the order in which names appear is used) |
| If a nominee dies before you | That nominee's share is treated as if there were no nomination | The next nominee in the order steps up |
| Best for | Splitting money among children or between spouse and children | Clear back-up arrangements, such as spouse first, then a child |
A nomination that does not meet the conditions (for example, percentages that do not add up to 100%, or a nomination that does not cover the whole deposit) is invalid under the amended section 45ZA, as if no nomination had been made. Ask the bank to check your form, and keep the acknowledgement.
What banks must do under RBI's directions
RBI's directions for commercial banks (Responsible Business Conduct Directions, 2025, as updated) implement the new rules from 1 November 2025:
- Explain the nomination facility and its benefits when an account is opened
- Never refuse or delay opening an account because the customer declines to nominate; take a written declaration instead
- Acknowledge a nomination, cancellation or change within three working days, whether or not you ask, and give reasons in writing within three working days if rejected
- Show "Nomination Registered" and the nominee's name on the passbook, statement and FD receipt
- In joint accounts, the nominee's right arises only after all the depositors have died
Cooperative banks are covered through the Banking Regulation Act as it applies to them, and their own RBI directions. Check with your bank.
Worked example 1: simultaneous nomination (illustrative)
Lakshmi has an FD of ₹12,00,000 and names three nominees simultaneously: her husband 50%, her son 25% and her daughter 25%.
| Nominee | Share | Amount on her death |
|---|---|---|
| Husband | 50% | ₹6,00,000 |
| Son | 25% | ₹3,00,000 |
| Daughter | 25% | ₹3,00,000 |
If the son dies before Lakshmi and she does not update the nomination, his 25% (₹3,00,000) is treated as un-nominated. The bank pays it to her legal heirs under its procedure for accounts without a nominee (for an amount below its threshold, the simplified procedure). See claiming a deceased depositor's account.
Worked example 2: successive nomination (illustrative)
Rahul nominates his wife first, his mother second and his brother third for his savings account, and the same order for his locker. If his wife is alive at his death, she alone receives the balance and access to the locker. If she has died, his mother does. The order removes ambiguity, but each nominee still receives as trustee for Rahul's legal heirs or beneficiaries under his will.
Nominee vs legal heir: what the nominee actually gets
RBI's claim rules require the bank to make it clear in writing that the nominee receives payment "as a trustee of the legal heirs" and that payment does not affect anyone's claim against the nominee. In practice:
- Payment to the nominee gives the bank a valid discharge. The bank must not ask the nominee for a succession certificate, probate or indemnity.
- If the deceased left a will, the beneficiaries can claim from the nominee.
- Without a will, the legal heirs under personal law can claim their shares from the nominee.
So, if you want your spouse to get the whole FD, say so in your will as well as in the nomination. See nominee vs legal heir.
Lockers and safe custody
- Only successive nomination, up to four persons
- On the hirer's death, the bank gives the nominee access with liberty to remove the contents after preparing an inventory
- Jointly hired lockers follow the joint operating instructions and survivorship clause
- RBI's directions require the bank to process locker claims and fix an inventory date within 15 calendar days of receiving all documents, with compensation of ₹5,000 per day of delay
Checklist: updating your nominations
- List every account, FD, RD and locker, including old dormant ones
- Decide simultaneous or successive for each deposit, and percentages
- Use the bank's new nomination form (or net banking, where offered) and keep the acknowledgement
- Add a guardian's details where a nominee is a minor
- Make nominations consistent with your will
- Review after marriage, divorce, birth or death in the family
Frequently asked questions
Do I have to change my old single nomination?
No. Existing nominations stay valid. You can add nominees or switch to percentages by submitting a new form.
Can a nominee be someone outside the family?
Yes. Any individual can be a bank nominee. Remember that they still hold the money for your heirs or beneficiaries.
Can I nominate a company or a trust?
Bank nomination is for individuals. To leave money to a charity or trust, use a will.
What if all my nominees die before me?
The account is treated as having no nomination, and your heirs claim it with heirship documents.
Sources
- Reserve Bank of India — RBI (Commercial Banks – Responsible Business Conduct) Directions, 2025, sections on nomination and deceased customers
- e-Gazette of India — Banking Laws (Amendment) Act, 2025 and the Banking Companies (Nomination) Rules, 2025
- Department of Financial Services — banking reforms
- RBI Complaint Management System — complaints about a bank's nomination or claim handling
