Nomination facility in Banks

Last updated by Jai on May 22, 2017

  • Nomination facility: Section 45 ZA to 45 ZF of the Banking Regulation Act, 1949
  • Procedures are given in Banking Companies (Nomination) Rules, 1985.


  • Account holder can nominate any individual of his choice as nominee  to receive money from the bank in case of death of the depositor.
  • Nomination facility is available to all types of deposit accounts (including joint accounts Either or Survivor), safe deposit lockers and safe custody articles, which are in the name of individuals.


  • The nominee can be any individual including illiterates, minors. However, nominations cannot be made in favour of joint names / Bodies (institutions / trusts etc).
  • The only exception is safe deposit lockers hired jointly; there can be more than one person as nominee.
  • In case of illiterate account holders, Bank should obtain two witnesses while accepting nomination.


  • Consent of nominee is not mandatory. Nomination made in respect of a term deposit will continue to be in force even on renewal of such deposit unless the nomination is specifically cancelled or changed.
  • The customer has option to change nomination any number of times during the currency of the deposit.
  • The rights of nominee arise only after the death of the depositor.


  • Name of the nominee is to be printed on the Passbook / Term Deposit Receipt at the specific request of the depositor.
  • Bank should take witness of Magistrate / Judicial Officer or an Officer of Central Govt. or State Government or an Officer of a Bank or two persons acceptable to the Bank for settlement of claims under nomination.
  • Supreme Court has clarified the nominee of a depositor nominee gets exclusive right to receive the money lying in the account BUT does not get ownership of the money in the account after death of the depositor. The money in the account form part of the estate of the deceased depositor and devolve according to the rules of succession [Ram Chander vs Devender Kumar]