A nominee in bank account is the person chosen by the account holder to receive the account balance after the account holder’s death.
Nomination makes the claim process easier for the family. It gives the bank a clear person to contact and pay, after checking documents.
Quick answer: A nominee can claim money from the bank after the account holder’s death. The nominee receives the money from the bank, while final ownership can still depend on legal heirs, will, and succession law. RBI says payment to a nominee is treated as a valid discharge of the bank’s liability when the bank verifies identity, death proof, and there is no court order blocking payment.
What is nominee in bank account?
A nominee in bank account is a person whose name is recorded by the bank to claim the account balance after the account holder dies.
Example: Rahul has a savings account. He adds his wife as nominee. If Rahul dies, his wife can submit the claim form, death certificate, and identity proof to the bank. After verification, the bank can pay the account balance to her.
Banks ask for nominee details because it reduces confusion after death. RBI’s nomination facility is meant to make claim settlement faster and reduce hardship for family members.
Nomination can be added in savings accounts, current accounts, fixed deposits, safe deposit lockers, and articles kept in bank safe custody.
Who can be a nominee in bank account?
A nominee can usually be a trusted person chosen by the account holder.
Common nominees are:
- spouse
- mother or father
- son or daughter
- brother or sister
- close relative
- trusted friend
A minor can also be a nominee. In that case, guardian details should be added, because the minor cannot handle the claim process directly. For lockers, RBI says if the nominee is a minor, the bank should hand over locker contents to the guardian whose details are given in the nomination form.
An NRI can also be added as nominee in many bank accounts, subject to bank process and applicable rules. The payout process may need extra checks if the nominee lives outside India.
Choose a nominee who is easy to contact, trusted by the family, and aware of the account details.
Bank account nominee rules in India
RBI’s 2025 nomination directions came into force from November 1, 2025 and apply to all banks. Banks must offer nomination facility in deposit accounts, lockers, and articles kept in safe custody.
Under the updated nomination provisions, bank customers can nominate up to 4 persons. For deposit accounts, the nominees can be added either simultaneously or successively.
Simultaneous nomination
Simultaneous nomination means more than 1 nominee is active at the same time.
Example:
| Nominee | Share |
|---|---|
| Wife | 50% |
| Son | 25% |
| Daughter | 25% |
The total share should be 100%.
Successive nomination
Successive nomination means nominees are added in order of priority.
Example:
- Wife
- Son
- Daughter
If the first nominee dies before claiming the money, the next nominee becomes relevant as per the nomination order. PIB states that customers can specify up to 4 nominees in successive nomination, where the next nominee becomes operative after the death of the nominee placed higher.
Joint account nomination
In a joint bank account, nomination should be handled carefully.
For a joint deposit account, RBI says the nominee’s right arises only after the death of all depositors.
Example: If husband and wife have a joint account and the son is nominee, the son’s nominee claim usually becomes relevant after both account holders die. If one account holder is alive, the surviving holder’s rights come first, depending on the account operation terms.
Can nomination be skipped?
Yes. A bank cannot deny or delay account opening only because the customer refuses to add a nominee, if all other account opening conditions are met. The bank must inform the customer about the nomination facility and record refusal if the customer does not want nomination.
Still, adding a nominee is better for family claim settlement.
Nominee vs legal heir
Many people think nominee and legal heir mean the same thing. This creates confusion during claims.
Here is the simple difference:
| Point | Nominee | Legal heir |
|---|---|---|
| Meaning | Person named in bank records | Person who inherits under law or will |
| Main role | Claims money from bank | Claims ownership as per succession law |
| Bank process | Easier if nomination exists | May need extra documents if no nominee exists |
| Final ownership | Can depend on legal position | Decided by succession law, will, or court order |
| Example | Wife named as nominee | Wife, children, parents as legal heirs depending on law |
RBI’s deceased claim directions say payment to the nominee or survivor does not affect the right or claim that another person may have against them. The nominee or survivor receives the payment as a trustee of the legal heirs.
So, a nominee can receive money from the bank. Legal heirs may still have a claim on that money.
Example: A man adds his brother as nominee before marriage. Later, he gets married and has children, but never updates the nominee. After his death, the brother may receive money from the bank. His wife and children may still have inheritance rights, depending on succession law and any will.
This is why nominee details should be updated after marriage, divorce, child birth, death of nominee, or major family change.
Rights of nominee in bank account
A nominee has the right to approach the bank after the account holder’s death and claim the account balance.
The nominee can:
- submit a claim form
- submit death certificate
- provide identity and address proof
- receive the account balance after bank verification
- communicate with the bank during the claim process
If a valid nomination exists, RBI says banks should not insist on documents such as succession certificate, letter of administration, probate of will, or indemnity bond from the nominee or survivor, provided the required conditions are met. The bank can ask for claim form, death certificate, and officially valid identity/address document.
The nominee’s right is mainly a banking claim right. It does not automatically cancel the rights of legal heirs.
How to add nominee in bank account
You can add a nominee while opening a new bank account. Most account opening forms have a nomination section.
You can also add a nominee later through:
- mobile banking
- net banking
- branch visit
- bank nomination form
- customer service request, depending on bank process
You usually need these details:
- nominee name
- relationship with account holder
- nominee address
- nominee date of birth
- nominee mobile number, if required
- guardian details if nominee is minor
RBI says banks must have systems to register, cancel, and change nomination as per customer request. Banks also need to acknowledge completed nomination forms within 3 working days. If a request is rejected, the bank must give written reasons within 3 working days.
Banks must also show nomination status on passbook, account statement, and term deposit receipt with “Nomination Registered.” They should also show nominee name in such cases.
How to change or cancel nominee
You can change or cancel nominee details when needed.
Update nominee after:
- marriage
- divorce
- birth of child
- death of existing nominee
- family dispute
- change in will
- change in financial planning
For a single account, the account holder can usually submit the nomination change or cancellation request.
For a joint account, banks may require all account holders to sign the request. RBI’s directions require banks to keep systems for registration, cancellation, and variation of nomination as requested by customers.
Before changing nominee, check these points:
- old nominee details
- new nominee name and address
- minor nominee guardian details
- whether your will and nomination match
- nomination in FD, locker, and other accounts
A nominee update is a small task, but it can save the family from claim delays.
Claim process after account holder’s death
When the account holder dies, the nominee can contact the bank and submit a claim.
Basic documents usually include:
- claim form
- death certificate
- nominee ID proof
- nominee address proof
- account details
- passbook, cheque book, or FD receipt if available
RBI’s deceased customer claim directions state that for accounts with nominee or survivorship clause, banks need the claim form, death certificate, and officially valid document of the nominee or survivor for identity and address verification.
The bank checks:
- account holder’s death proof
- nominee identity
- nomination record
- court order status, if any
- account balance and claim details
After verification, the bank can transfer the balance to the nominee.
For joint accounts, the process depends on account type and survivorship clause. For example, “either or survivor” accounts are handled differently from accounts where all holders must sign.
What happens if there is no nominee?
If there is no nominee, the family may need more documents.
RBI has given a simplified process for claims without nominee or survivorship clause up to a threshold limit. The threshold limit is ₹15 lakh for banks other than co-operative banks, and ₹5 lakh for co-operative banks, or a higher limit fixed by the bank.
For claims without nominee, banks may ask for:
- claim form
- death certificate
- identity and address proof of claimant
- legal heir certificate
- indemnity bond
- disclaimer or no-objection letter from non-claimant legal heirs
- succession certificate in some higher-value or disputed cases
If there is a will, dispute, contesting claim, or court order, the bank process can take more time. RBI states that in disputed cases, banks may settle claims based on probate of will, letter of administration, succession certificate, or court order, as applicable.
This is the main reason every account holder should add a nominee.
Common mistakes people make with bank nominees
1. Skipping nominee while opening account
Many people leave the nominee field empty.
This can create extra work for family members after death. They may need legal heir documents, no-objection letters, indemnity, or court papers depending on the case.
2. Adding nominee once and never updating it
Old nominee details can create family disputes.
Example: A person adds father as nominee while opening the account. Later, the person gets married and has children. If the nominee is not updated, the claim process can become confusing.
3. Thinking nominee is the final owner
A nominee can claim money from the bank. Final ownership may still depend on legal heirs, will, and succession law.
RBI clearly states that payment to a nominee or survivor does not affect the claim any person may have against them.
4. Adding a minor nominee without guardian details
A minor nominee needs an adult guardian for practical claim handling.
Add full guardian details when the nominee is below 18 years.
5. Not telling family about accounts
Nomination is useful when the family knows where the accounts exist.
Keep a simple record of:
- savings accounts
- current accounts
- fixed deposits
- bank lockers
- insurance policies
- EPF
- mutual funds
- demat account
Do not share passwords. Just keep account information safely with trusted family members.
6. Keeping different nominees without planning
Some people add one nominee in bank account, another in FD, another in insurance, and another in investments.
This can be fine if it is planned. It can create confusion if it happened randomly over time.
Review all nominee details once a year.
Is nominee mandatory in bank account?
Nominee is not mandatory for opening a bank account.
RBI says banks must inform customers about the nomination facility and its benefits. If the customer chooses not to add a nominee, the bank can open the account after recording the customer’s written declaration or refusal record. The bank cannot deny or delay account opening only because the customer refused nomination.
Still, nomination is strongly recommended.
It saves time for the family and makes the bank claim process easier.
Conclusion
A nominee in bank account makes the claim process easier after the account holder’s death.
The nominee can receive money from the bank after submitting required documents. Legal heirs may still have inheritance rights, depending on succession law and will.
Update nominee details after major life events. Check nomination in savings account, current account, FD, and locker. A few minutes of nominee update can save your family weeks or months of paperwork later.
FAQs
What is nominee in bank account?
A nominee in bank account is the person chosen by the account holder to claim the account balance after the account holder’s death. The bank uses nominee details to settle the claim after checking documents.
Can I add more than one nominee in bank account?
Yes. From November 1, 2025, customers can nominate up to 4 persons. For deposit accounts, nomination can be simultaneous or successive.
Can I change nominee in bank account?
Yes. You can change or cancel nominee details by following your bank’s process. RBI says banks must maintain systems to register, cancel, and change nominations as per customer request.
Can a minor be nominee in bank account?
Yes, a minor can be nominee. Add guardian details so the bank knows who can receive or manage the claim on behalf of the minor if required.
Is nominee mandatory in bank account?
No. Nominee is not mandatory, but banks must offer the facility and explain its purpose. Adding a nominee is better because it makes claim settlement easier for family members.