In a significant regulatory update, the Reserve Bank of India (RBI) has announced that individuals can now open and maintain bank accounts without mandatorily adding a nominee. The move aims to provide greater flexibility and autonomy to customers while ensuring transparency and proper acknowledgment of the choice made.
🔹 What Has Changed?
Earlier, most banks required customers to add a nominee at the time of opening savings, current, or fixed deposit accounts. With the new RBI directive, customers now have the option to skip the nomination process, provided they give a written declaration confirming the decision.
This step aligns with the RBI’s goal of simplifying banking procedures while respecting the individual’s right to choose.
“Customers must be fully informed about the benefits of nomination and allowed to decline only after submitting a signed declaration,” the circular stated.
🔹 Key Highlights of the New Rule
Customers can choose not to add a nominee at the time of opening or updating an account.
A written or digital declaration must be submitted confirming the decision to opt out.
Banks must inform customers about the implications of not having a nominee — particularly regarding fund claims in case of the account holder’s death.
The rule applies to savings accounts, term deposits, current accounts, and locker facilities.
🔹 Why This Change Matters
The RBI’s move is seen as a step toward greater banking flexibility. Many customers previously faced hurdles when unable to decide on a nominee during account opening.
This update:
Reduces procedural delays for customers.
Ensures individual consent and documentation for non-nomination.
Promotes digital and paperless banking through self-declarations.
However, financial advisors still recommend adding a nominee, as it simplifies the fund transfer process for legal heirs in case of unforeseen events.
🔹 What Customers Should Know
While opening a new account:
You can either add a nominee or opt out by signing the declaration form.
If you skip nomination now, you can add one later through internet banking or a branch visit.
In the absence of a nominee, legal heirs will need to provide succession documents to claim funds — a process that can take longer.
FAQs
1. Can I open a bank account without a nominee now?
Yes. RBI’s new rules allow you to open an account without a nominee by submitting a written declaration.
2. Is it compulsory to have a nominee in a bank account?
No, it’s optional — but having one is advisable for smooth settlement in case of the account holder’s death.
3. Can I add a nominee later?
Yes, you can add or update nominee details anytime through online banking or by visiting your branch.
4. Does this apply to existing accounts?
Yes, you can modify nomination status for existing accounts as per the new rule.
5. What are the risks of not adding a nominee?
Without a nominee, fund claims may take longer and require legal documentation.
Published on : 30th October
Published by : SMITA
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