Introduction

A bank account is an important part of financial life. It helps individuals receive income, pay bills, manage savings and handle business transactions. For self-employed people, it can also be central to receiving client payments, managing operating expenses and maintaining financial records for loan applications.

But have you thought about what would happen to the money in your bank account if something unexpected happened to you?

This is where a bank account nominee becomes important.

A nominee is a person you identify to receive the money or handle the claim process with the bank if you pass away, subject to applicable banking and legal rules. Registering a nominee can make it easier for your family to approach the bank and claim the account balance.

India's nomination framework has also changed. From 1 November 2025, deposit account holders can nominate up to four people, either simultaneously or successively, under the Banking Laws (Amendment) Act, 2025 and the Banking Companies (Nomination) Rules, 2025.

This guide explains how to add, change or cancel a nominee in a bank account, what information you may need, how online nomination works and why self-employed borrowers should keep their banking details organised.

AI Answer Box: How Do You Add or Change a Nominee in a Bank Account?

To add or change a nominee in an Indian bank account, use your bank's official mobile banking or internet banking facility if e-nomination is available, or submit the prescribed nomination form at a bank branch.

You will generally need your account details, nominee information, required authentication and consent or signatures from all account holders where applicable. From 1 November 2025, depositors can nominate up to four individuals, either simultaneously by assigning percentage shares totalling 100%, or successively in a specified order.

After submitting the request, obtain and retain the bank's acknowledgement. A nomination helps simplify the bank's settlement process after the account holder's death, but it does not automatically replace a Will or determine beneficial ownership under succession law.

1. What Is a Nominee in a Bank Account?

A nominee is an individual named by a bank account holder to receive the deposit amount from the bank in the event of the account holder's death, in accordance with applicable nomination rules.

The nomination facility is intended to reduce difficulties for family members and help banks settle claims more efficiently.

For example, a self-employed consultant may maintain a savings account for personal savings and another eligible deposit account for individual business-related banking. By registering a nominee, the account holder gives the bank a recognised person or persons to approach for the claim process after the account holder's death.

Why is a bank nominee important?

A registered nominee can help:

• Simplify the bank's deceased-account claim process.

• Reduce avoidable delays in accessing account balances.

• Make the account holder's wishes about the bank's payment process clearer.

• Provide family members with a recognised point of contact.

• Reduce paperwork compared with some claims where no nomination exists.

Important: A nominee is not automatically the final beneficial owner of the money. Under RBI's deceased-customer settlement framework, a nominee receiving payment from the bank does so as a trustee of the legal heirs. A Will and applicable succession law may still be relevant to the ultimate rights over the funds.

2. What Are the Latest Bank Nomination Rules in India?

The Banking Laws (Amendment) Act, 2025 introduced changes to the nomination framework. The relevant nomination provisions and the Banking Companies (Nomination) Rules, 2025 came into effect on 1 November 2025.

The major change for deposit accounts is that customers can nominate up to four individuals instead of being limited to one nominee.

Key features of the updated rules

• Up to four nominees can be named for a deposit account.

• Depositors can choose simultaneous or successive nomination.

• In simultaneous nomination, each nominee receives a specified percentage share, and the total must equal 100%.

• In successive nomination, nominees are listed in priority order.

• A later nominee becomes relevant only if the nominee or nominees higher in the order have died, as prescribed by the rules.

• A bank may offer electronic or digital nomination if it has enabled the facility and follows the required authentication process.

• A subsequent nomination can cancel or vary an earlier nomination.

• All account holders must participate in a valid change or cancellation for a jointly held deposit account.

The updated framework also covers nominations for articles kept in safe custody and safety lockers. However, the nomination options for those facilities differ from deposit accounts.

3. What Are the Two Types of Nomination for Bank Deposits?

Under the updated framework, depositors can choose between simultaneous and successive nomination.

3.1 Simultaneous Nomination

In simultaneous nomination, you can name up to four people and assign a percentage share to each nominee.

The total of all shares must equal 100%.

Example:

A self-employed business owner wants to nominate three family members for a deposit account.

This option allows the depositor to specify the percentage allocation for each nominee.

3.2 Successive Nomination

In successive nomination, you list up to four nominees in a particular order.

Only the first eligible nominee is operative at a given time. The next nominee in the sequence becomes relevant if the nominee placed higher in the order has died.

Example:

This option is useful when the account holder wants to identify a priority sequence rather than divide the amount among several nominees at the same time.

Simultaneous vs. successive nomination

4. Who Can Be a Nominee in a Bank Account?

A depositor can generally nominate an individual under the applicable rules.

Depending on the bank's process and the account circumstances, a nominee may be:

• Spouse.

• Son or daughter.

• Parent.

• Brother or sister.

• Another eligible individual.

A nominee does not necessarily have to be a legal heir or family member. However, the depositor should choose carefully and provide accurate details.

Can a minor be a nominee?

Yes. A minor can be named as a nominee.

When nominating a minor, the depositor may appoint an adult individual to receive the deposit amount on behalf of the minor if the depositor dies while the nominee is still a minor.

The bank's prescribed form or digital process will require the relevant guardian details.

5. How to Add a Nominee to a Bank Account Offline

If your bank does not provide online nomination or you prefer a branch visit, you can generally register a nominee by submitting the prescribed nomination form.

Follow these steps:

Step 1: Visit your bank branch

Visit the branch where your account is maintained or another branch if the bank permits the request there.

Step 2: Ask for the nomination form

Request the current form for nomination in respect of bank deposits. Use the form prescribed under the applicable Banking Companies (Nomination) Rules, 2025.

Step 3: Enter account holder details

You may need to provide:

• Account holder's name.

• Account number or customer ID.

• Bank and branch details.

• Type of deposit account.

• Contact information, where requested.

Step 4: Provide nominee details

Enter the nominee's required information accurately.

This may include:

• Full name.

• Address.

• Age.

• Relationship with the account holder, if any.

• Mobile number or email, if requested.

• Guardian information if the nominee is a minor.

• Percentage share for simultaneous nomination or priority order for successive nomination.

Step 5: Sign the form

The account holder or all account holders, as applicable, must complete the required signatures or authentication.

Step 6: Submit the form

Hand over the completed form to the bank and request an acknowledgement.

Step 7: Verify the registration

Check your updated passbook or account statement for the nomination status and nominee details. Contact the bank if the information is missing or incorrect.

6. How to Add a Nominee Online Through Mobile Banking or Internet Banking

Many banks provide digital nomination facilities, although the exact menu names and availability vary.

If your bank supports e-nomination, follow this general process.

Step-by-step online process

1. Open the bank's official mobile application or website.

2. Log in using your registered credentials.

3. Find the service section for account services, profile services or nomination.

4. Select the account for which you want to register a nominee.

5. Choose the option to add or register a nominee.

6. Select simultaneous or successive nomination, if the bank's interface provides the updated choices.

7. Enter the nominee's details carefully.

8. Provide percentage shares or priority order, as applicable.

9. Review the information before submission.

10. Complete the authentication requested by the bank.

11. Save the confirmation or reference number.

Important points about e-nomination

The Banking Companies (Nomination) Rules, 2025 allow e-nomination where the bank has made the facility available.

The rules provide for authentication through accepted electronic methods. When internet or mobile banking is used for authentication, a minimum of two-factor authentication is required.

Do not use links received through unknown SMS messages, social media posts or unofficial websites. Always open your bank's official app or type its official website address yourself.

7. How to Change an Existing Nominee in a Bank Account

You may need to change a nominee if your family circumstances change or if the existing nominee is no longer the person you wish to name.

Examples include:

• Marriage.

• Birth or adoption of a child.

• Death of an existing nominee.

• Change in family responsibilities.

• A decision to nominate multiple individuals.

• A change in your preferred percentage allocation or priority order.

Steps to change a nominee

1. Contact your bank or log in to its official digital banking channel.

2. Select the account for which you want to change the nomination.

3. Choose the option for variation or change of nomination.

4. Enter the updated nominee information.

5. Select the appropriate nomination type.

6. Complete the required signatures or digital authentication.

7. Submit the request.

8. Obtain an acknowledgement and verify the updated record.

Under the 2025 nomination rules, a subsequent nomination can cancel or vary the previous nomination. Read the declaration carefully before submitting it.

For a jointly held account, the variation or cancellation is not valid unless it is made by all depositors.

8. How to Remove or Cancel a Nominee From a Bank Account

If you no longer want a nominee to be registered, you can request cancellation through the bank's prescribed process.

General cancellation process

• Contact the bank or open its official digital banking service.

• Select the account concerned.

• Choose cancellation of nomination, if available.

• Complete the prescribed form or e-nomination process.

• Obtain the required signatures or authentication.

• Submit the request.

• Retain the bank's acknowledgement.

If you want to replace an existing nominee rather than leave the account without nomination, you can generally submit a subsequent nomination with the updated details.

For joint accounts, all depositors must participate in a valid cancellation or variation.

9. What Documents and Details Are Required to Add a Nominee?

The exact requirements vary by bank and by the method used.

The nomination process may require:

A separate identity document for the nominee may not be required in every case at the registration stage. Follow the current instructions on your bank's form or official website.

10. Can You Add a Nominee to a Joint Bank Account?

Yes, nomination is available for eligible joint deposit accounts.

However, all depositors must agree to and complete the nomination process as required by the bank.

Important points for joint accounts

• All account holders should review the nominee details.

• All depositors must participate in a valid nomination, variation or cancellation.

• The nomination becomes relevant for claim settlement after the death of all depositors, in accordance with the applicable rules.

• The account's operating instructions and survivorship clause should also be checked.

Do not confuse a nomination with the joint account's operating mandate. They serve different purposes.

11. Can a Self-Employed Person Add a Nominee to a Business Bank Account?

Self-employed people may use savings accounts, current accounts or other eligible deposit accounts for personal and business-related financial activity.

The RBI's 2025 nomination directions clarify that where an individual maintains an account for a sole proprietorship business, it is treated as that individual's account for nomination purposes, and the nomination facility must be offered.

This is useful for:

• Freelancers.

• Independent consultants.

• Small shop owners.

• Individual service providers.

• Sole proprietors.

• Online sellers operating as sole proprietors.

However, nomination applies to deposits held in the individual's capacity. It does not automatically extend to accounts held in a representative capacity, such as an account held on behalf of an office or another legal person.

What about partnership firms and companies?

Do not assume that the nomination rules for an individual's deposit account apply in the same way to every business entity.

Partnership firms, companies, trusts and other legal entities have different ownership and account structures. Ask the bank about the applicable rules for the specific entity and account.

12. Does Adding a Nominee Improve Loan Eligibility?

Adding a nominee does not directly increase your credit score or guarantee personal loan approval.

A nomination is mainly a facility for the settlement of a bank deposit after the depositor's death. Loan eligibility is assessed separately.

Lenders may consider:

• Monthly or annual income.

• Business continuity.

• Bank statement history.

• Credit score and repayment history.

• Existing loans and financial obligations.

• Requested loan amount.

• Repayment capacity.

• KYC and identity verification.

• Other lender-specific eligibility conditions.

Why should self-employed borrowers still review nomination details?

A self-employed person often manages several financial responsibilities, including business expenses, household expenses and loan repayments.

Keeping bank account information organised can help with general financial management. Registering a nominee is one part of responsible account maintenance, even though it is not a loan approval criterion.

13. Nomination vs. Will: What Is the Difference?

A nomination and a Will serve different purposes.

Why should you understand the difference?

Under RBI's deceased-customer settlement framework, a nominee receives payment from the bank as a trustee of the legal heirs. The payment to the nominee discharges the bank's liability under the specified conditions, but it does not by itself remove any legal heir's claim against the nominee.

If your family or asset situation is complicated, consult a qualified legal professional about succession planning and a Will.

14. Benefits of Adding a Nominee to Your Bank Account

Registering a nominee can provide several practical benefits.

• Simpler claim process: The bank has a registered nominee to approach after the account holder's death.

• Reduced family hardship: A nomination can help avoid some of the difficulties associated with an account without nomination.

• Clearer account records: The bank can record the nomination status and nominee details.

• Multiple nominee flexibility: The updated rules allow up to four nominees for deposit accounts.

• Better financial planning: It encourages account holders to review how their financial affairs are organised.

• Useful for self-employed people: Sole proprietors can use the nomination facility for eligible accounts maintained in their individual capacity.

15. Pros and Cons of Bank Account Nomination

16. Common Mistakes to Avoid When Adding or Changing a Nominee

1. Entering the wrong nominee details

A spelling error, incorrect date of birth or outdated address can create problems during a future claim.

2. Forgetting to specify percentage shares

For simultaneous nomination, the percentage shares must add up to 100%.

3. Confusing simultaneous and successive nomination

Simultaneous nomination divides shares among nominees. Successive nomination sets a priority sequence. Select the option that matches your intention.

4. Not updating the nomination after major life changes

Review your nominee details after significant family or personal changes.

5. Assuming the nominee automatically owns the money

The nominee receives the deposit from the bank under the applicable process. The legal rights of heirs may still need to be considered.

6. Ignoring joint-account requirements

All depositors must participate in a valid variation or cancellation of nomination.

7. Not saving the bank's acknowledgement

Keep the acknowledgement or digital confirmation for future reference.

8. Sharing OTPs or banking credentials

Never disclose your password, PIN or OTP to anyone claiming to help you register a nominee.

17. RBI Rules: What Happens After You Submit a Nomination Request?

The RBI's nomination directions and the Banking Companies (Nomination) Rules, 2025 provide important customer protections.

Banks must maintain systems for registering, cancelling and varying nominations. They must also provide an acknowledgement for a duly completed nomination request.

Under the RBI's directions:

• Banks must acknowledge receipt of completed nomination, cancellation or variation forms within three working days.

• If a request is rejected because it does not comply with the applicable rules, the bank must inform the customer in writing and state the reasons within three working days.

• Banks must record nomination status on the passbook or statement of account and term deposit receipt.

• Where a nomination is registered, the bank must also indicate the nominee's name in the relevant record.

The acknowledgement is important. Keep it and check that the nomination has been correctly registered in the bank's records.

18. Practical Example: A Freelancer Updates a Bank Nominee

Consider a freelance digital marketing consultant who receives payments from several clients through a savings account.

The consultant originally registered one family member as the nominee when opening the account. After a change in family circumstances, the consultant decides to update the nomination and include more than one person.

The consultant follows these steps:

1. Checks whether the bank supports e-nomination.

2. Reviews the updated nomination choices.

3. Selects simultaneous nomination.

4. Enters the details of the intended nominees.

5. Assigns percentage shares that total 100%.

6. Completes the bank's required authentication.

7. Saves the acknowledgement.

8. Checks the account statement to confirm that the nomination has been recorded.

This is an illustrative example. The actual process depends on the bank, account ownership and the customer's circumstances.

19. A Simple Annual Banking and Nomination Checklist

Self-employed borrowers can review their bank account details once or twice a year.

• Confirm that your account details are correct.

• Check whether a nominee is registered.

• Verify the nominee's name and contact information.

• Review percentage shares or priority order.

• Update the nomination if family circumstances have changed.

• Check that all joint account holders agree with the nomination.

• Keep the bank's acknowledgement safely.

• Review your KYC details and registered mobile number.

• Download and organise bank statements.

• Keep business income and expense records up to date.

• Review your Will and broader succession arrangements with a qualified professional if needed.

Frequently Asked Questions (FAQs)

1. How do I add a nominee to my bank account?

You can add a nominee by submitting your bank's prescribed nomination form at a branch or using its official mobile banking or internet banking facility if e-nomination is available. Enter the required nominee details and complete the bank's authentication process.

2. Can I add a nominee to my bank account online?

Yes, if your bank provides an e-nomination facility. Log in through the official banking app or website, find the nomination service, enter the details and complete the required authentication.

3. How many nominees can I add to a bank account in India?

Under the Banking Companies (Nomination) Rules, 2025, effective from 1 November 2025, depositors can nominate up to four individuals, either simultaneously or successively.

4. What is simultaneous nomination?

Simultaneous nomination allows you to name up to four nominees and specify each person's percentage share. The total percentage must equal 100%.

5. What is successive nomination?

Successive nomination allows you to list up to four nominees in priority order. A nominee lower in the order becomes relevant only when the nominee or nominees above them have died, as prescribed by the rules.

6. Can I change my bank account nominee?

Yes. You can submit a subsequent nomination or variation request through your bank's prescribed offline or digital process. Keep the acknowledgement and verify that the new details have been recorded.

7. Can I remove or cancel a nominee from my bank account?

Yes. You can request cancellation through the bank's nomination form or e-nomination facility, if available. For a joint account, all depositors must participate in a valid cancellation.

8. Can I nominate a minor in my bank account?

Yes. A minor can be nominated. The depositor may appoint an adult to receive the deposit amount on the minor's behalf if the depositor dies while the nominee is still a minor.

9. Can I nominate someone who is not a family member?

A depositor can generally nominate an eligible individual who is not necessarily a family member or legal heir. Provide accurate details and understand the legal implications of your choice.

10. Is a nominee the legal owner of the bank balance?

Not automatically. Under RBI's deceased-customer settlement framework, the nominee receives payment from the bank as a trustee of the legal heirs. The rights of legal heirs may still need to be considered under applicable succession law.

11. Can I add a nominee to a joint bank account?

Yes, eligible joint deposit accounts can have a nomination. All depositors must participate in the nomination process as required. The nominee's right to claim generally arises after the death of all depositors.

12. Can a self-employed person add a nominee to a current account?

An individual maintaining an account for a sole proprietorship business is treated as the individual for nomination purposes under the RBI's 2025 directions. Other business structures may have different rules, so check with the bank.

13. How long does a bank take to acknowledge a nomination request?

Under the RBI's 2025 nomination directions, banks must acknowledge duly completed nomination, cancellation or variation requests within three working days. If a request is rejected for non-compliance, the bank must communicate the reasons in writing within three working days.

14. Does adding a nominee improve my personal loan eligibility?

No. Nomination is intended to simplify the settlement of deposits after the account holder's death. Loan eligibility is assessed separately based on factors such as income, credit history, repayment capacity and lender-specific conditions.

15. Is a bank nomination the same as a Will?

No. A nomination helps the bank settle the deposit claim with the named nominee. A Will is a separate legal document that records how assets should be dealt with after death. A nomination does not automatically replace a Will or determine the final beneficial ownership of the funds.

Conclusion

Adding or changing a nominee is a simple but important part of maintaining a bank account. It helps the bank identify the person or people who can approach it for settlement of the deposit after the account holder's death.

India's updated nomination framework, effective from 1 November 2025, gives depositors more flexibility by allowing up to four nominees for deposit accounts through simultaneous or successive nomination.

Self-employed borrowers should review their account details, keep their KYC information current and make sure their financial records are organised. A registered nominee does not improve loan eligibility directly, but it is a useful part of responsible financial planning.

Review your banking details today, and explore personal loan options at Vizzve Financial when you are ready to apply.

Published on : 10th November

Published by : Doulath bee

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