A major banking update is coming into effect from November 1, allowing customers to add up to four nominees for their bank accounts. This move aims to make account management and inheritance smoother, giving customers more flexibility and security over their financial assets.
What’s Changing From November 1?
Until now, most banks permitted only one nominee per account. From November 1, customers can add up to four nominees, assigning specific percentages of the balance to each.
For example, if you have ₹1 lakh in your account, you can assign:
Nominee 1 – 40%
Nominee 2 – 30%
Nominee 3 – 20%
Nominee 4 – 10%
This ensures that the account holder’s funds are distributed exactly as they wish, reducing legal complications for families later.
Why the New Rule Matters
This change is designed to enhance transparency and fairness in financial planning. It also helps reduce disputes among family members after the account holder’s demise.
Multiple nominations will be especially useful for:
Joint families
Senior citizens with multiple dependents
Investors holding high-value savings or deposits
It provides greater control over asset distribution and eliminates the risk of one nominee having to redistribute funds informally.
How Customers Can Add Nominees
Banks will soon roll out updated nomination forms and online options via net banking and mobile apps. Customers will be able to:
Log in to their online banking portal.
Go to the “Nominee Details” or “Update Nomination” section.
Add up to four nominees, entering their names, relationship, and share percentage.
Submit digitally or visit a branch for confirmation.
Existing customers can also update or modify nominations anytime after November 1.
Applicability Across Account Types
This new rule applies to:
Savings accounts
Current accounts
Fixed deposits (FDs)
Recurring deposits (RDs)
Banks are expected to notify customers officially through emails, SMS alerts, and website updates before the rule takes effect.
What Happens If You Don’t Add Nominees
If no nominee is added, the settlement process becomes more complicated, requiring legal proof of succession (like a will or legal heir certificate). Having nominees helps avoid delays and disputes in fund transfers after the account holder’s death.
The Bottom Line
Starting November 1, adding multiple nominees will become a standard feature across Indian banks.
This is a progressive step toward smarter financial planning, ensuring that your hard-earned money reaches your loved ones smoothly and fairly.
Now’s the time to review your accounts and update nomination details once the rule is live!
FAQs
1. When will the new nominee rule take effect?
The rule will be implemented from November 1 across all major banks.
2. How many nominees can I now add?
You can add up to four nominees for each account.
3. Can I assign different percentages to each nominee?
Yes, you can specify what portion of your account balance each nominee will receive.
4. Do I need to visit the bank to update nominees?
Not necessarily. Most banks will provide online options to add or modify nominee details.
5. Does this apply to existing accounts?
Yes, existing account holders can update their nominee details after November 1.
Published on : 23rd October
Published by : SMITA
www.vizzve.com || www.vizzveservices.com
Follow us on social media: Facebook || Linkedin || Instagram
🛡 Powered by Vizzve Financial
RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed
https://play.google.com/store/apps/details?id=com.vizzve_micro_seva&pcampaignid=web_share