Here’s How To Add Or Change A Bank Nominee

From November 1, banks have allowed customers to name up to four nominees for accounts, deposits and lockers. Change or cancellation of a nominee must be acknowledged by the bank within three working days. Nominee details appear on passbooks, statements, and fixed deposit receipts.

Having a nominee eases fund transfer and reduces legal complications after the accountholder’s demise.

In case of multiple nominees, depositors can choose between simultaneous or successive nominations.

In simultaneous nomination, each nominee’s share can be specified. In successive nominations, the next nominee becomes eligible only after the first nominee’s death.

Offline Method

1. Visit bank home branch. Submit identity proof such as Aadhaar, PAN, or voter ID.

2. Choose form DA1 to add nominee, DA2 to cancel an existing nominee, and DA3 to update nominee details. All banks use these forms under the Banking Companies (Nomination) Rules, 1985.

3. Submit the form with your signature to the bank representative for further processing.

4. Collect the written acknowledgment provided by the bank.

Online Method

1. Visit the bank website or mobile app, and log in through Netbanking.

2. To access nomination options, select the Profile or Account Services section.

3. Select the option to add, update, or cancel a nominee.

4. Enter nominee information, such as name, relationship, and phone number.

5. Verify OTP received on mobile registered with Aadhaar and your bank.

6. Once submitted, save the acknowledgement or confirmation for your records.

Why Is Nomination Important?

• Having a nominee ensures that someone is entitled to collect the funds and assets parked in the deceased’s bank account/s.

• However, a nominee only holds or collects the money on behalf of the legal heirs, as heirs are the actual inheritors. A legal heir can also be named as a nominee.

• A nominee can quickly access assets at the time of the accountholder’s death, helping manage immediate expenses such as burial fees or even living costs of the family, provided there is no dispute.

Who Can Be A Nominee?

• A nominee can be any individual: a family member, friend, or any trusted person chosen by the account holder.

• A nominee must be an individual, and not a company, trust, or institution for retail accounts.

• A minor can also be nominated, but an adult guardian must be appointed to manage the funds until the minor turns 18.