The Reserve Bank of India (RBI) has issued new and stricter guidelines regarding the nomination facility, which will come into effect from November 1, 2025. Under these new rules, it will now be mandatory for all banks (including cooperative and rural banks) to provide the nomination facility to their customers. The RBI aims to make the settlement of claims after the death of account holders easy, fast, and transparent. This new rule will transform the entire nomination process between banks and customers, making your financial future more secure.
Nomination will now be mandatory
RBI’s new rules make nomination a formal and mandatory process, increasing bank accountability. RBI has directed all banks to provide the nomination facility to all their customers. If a customer does not wish to avail the nomination facility, they will be required to submit a written declaration. Banks cannot delay account opening for this reason. Banks will be required to issue a receipt within three working days of receiving the nomination form. It will also be mandatory to write “Nomination Registered” on the passbook or Term Deposit Receipt to maintain complete transparency in records.
Nomination Change and Rejection Rules
The new rules will give customers a clear option to register, cancel, or modify a nomination, and written proof of each change must be provided to the bank. If the bank rejects a nomination for any reason, it must inform the customer in writing within three working days. This rule protects customer rights. The RBI has also clarified that if there is more than one nominee in an account and one of them dies before receiving the money, that person’s nomination will automatically be considered terminated.
Fast Claim Settlement
These guidelines are in line with RBI’s previous provisions, which provided for the settlement of claims of deceased customers within 15 days. In case of a valid nomination or survivorship clause, the bank can release the funds directly to the nominee or heir upon the account holder’s death. This provision saves families from lengthy legal proceedings.