Starting November 1, 2025, the Reserve Bank of India (RBI) and major banks will allow customers to add up to four nominees for their savings, fixed deposit, or recurring deposit accounts.
This marks a major shift from the earlier single-nominee system — giving depositors more flexibility and control over their financial legacy.
Here’s how the new system works and what it means for you.
1. What’s the new rule on bank nominees?
From November 1, depositors can now nominate up to four individuals for a single bank account.
Each nominee can be assigned a specific percentage share of the account balance, ensuring smoother and fairer distribution after the depositor’s demise.
For example:
If you have ₹10 lakh in your account and nominate 4 people with equal shares, each will receive ₹2.5 lakh.
2. Why was this rule introduced?
The move aims to:
Simplify inheritance and claim settlement;
Reduce legal disputes among heirs;
Ensure financial inclusion by covering multiple dependents;
Make the nomination process more transparent and digitized.
3. How will it impact depositors?
The change offers several benefits for depositors:
✅ Greater flexibility — You can now distribute your savings among multiple family members.
✅ Reduced disputes — Clearly defined shares prevent conflicts among heirs.
✅ Easy updates — You can modify or reassign nominee shares anytime through online banking.
✅ Security for dependents — More than one dependent can now be financially protected.
However, depositors must regularly review nominee details to ensure they reflect current family or legal situations.
4. Does the nominee become the owner of the funds?
No — a nominee is a custodian, not a legal heir.
The nominee receives the money after the depositor’s death but must transfer it to the rightful heirs, unless they are the same person.
The new rule doesn’t change the succession law, but it does streamline the process of fund access
5. Will existing accounts need to be updated?
Yes, banks are expected to invite existing customers to update or add additional nominees after November 1.
Those who do not update will continue under the single-nominee rule until they opt for multiple nominees voluntarily.
🪙 6. What happens if no nominee is added?
If an account holder dies without a nominee, the claim process becomes longer and requires:
Succession certificate, or
Legal heir certificate, or
Court order for fund release.
Hence, experts strongly advise adding nominees to avoid delays and disputes.
💡 Expert Take
Financial advisors welcome this update as a progressive move toward better financial planning.
It aligns with global practices and strengthens digital estate management — ensuring families can access funds without legal complexity.
❓ FAQs
Q1. How many nominees can a depositor now add?
Up to four nominees for one account, with customizable percentage shares.
Q2. Can I change nominees later?
Yes. You can add, remove, or edit nominee shares anytime through online or branch requests.
Q3. Does this rule apply to joint accounts?
Yes, provided all account holders consent to the nominee assignments.
Q4. Do minors qualify as nominees?
Yes, but a guardian’s details must be provided for any nominee under 18 years.
Q5. Is this applicable for fixed deposits and recurring deposits?
Yes, the rule applies to all deposit types — including savings, FD, RD, and senior citizen deposits.
Published on : 24th October
Published by : SMITA
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