RBI Stresses Importance of Nomination in Bank Accounts

The Reserve Bank of India has directed banks to secure nominations for all new and existing deposit accounts and safety lockers. This measure aims to ease claim settlements for family members after the account holder's death. Banks must regularly report progress on ensuring nominations.

The Reserve Bank of India (RBI) has issued a directive for banks to ensure that all new and existing deposit accounts and safety lockers have nominated beneficiaries. This move is intended to simplify the process of claim settlements for the families of deceased account holders.

According to RBI's supervisory assessment, a significant number of deposit accounts currently lack nominations. To alleviate potential difficulties for survivors and family members, the central bank emphasizes the crucial step of obtaining nominations in all applicable customer dealings, including safe custody articles and security lockers.

The RBI circular also mandates the Customer Service Committee of each bank's Board of Directors to evaluate the progress of nomination coverage regularly. Reports on this matter are to be submitted quarterly to the RBI's DAKSH portal, commencing March 31, 2025. Additionally, banks have been urged to inform customers about the benefits of using the nomination facility, using multiple media channels to drive full coverage of all eligible accounts.

(With inputs from agencies.)