What Does a Nominee Do?
- A nominee does not become the legal owner of your money.
- They act as a custodian—someone who receives the money and holds it until it’s legally distributed.
- They help avoid complications or delays for your family during inheritance.
Where Can You Add a Nominee?
You can nominate someone for:
- Savings and current accounts
- Fixed or recurring deposits
- Locker facilities
- Joint accounts (with restrictions)
- Mutual funds, insurance, and demat accounts
Who Can Be a Nominee?
- Any individual: spouse, child, sibling, parent, or even a friend
- You can add multiple nominees (some banks allow this) and specify percentage shares
- You must provide full name, relationship, address, and date of birth of the nominee
How to Add or Change a Nominee
- Fill the nomination form (DA1) when opening your account
- To change, fill form DA3 or visit the bank branch
- Can be done online for some banks (Net banking or Mobile banking app)
Important Legal Info
- Nominee ≠heir: If your legal heirs (like children or spouse) claim the money, they may be entitled to it over the nominee, unless your will says otherwise.
- A nomination simplifies claim processing, but legal ownership is decided by succession laws.
Why It’s Important
- Helps your family avoid long legal processes to access your funds
- Ensures that money doesn’t remain unclaimed in your account
- Mandatory for lockers and deposits as per RBI guidelines
Summary
A nominee in banking is someone you authorize to receive your funds after your death. It doesn’t make them the legal heir, but it ensures quick and safe transfer of money until rightful heirs claim it. Always keep your nominee details updated to protect your family’s access to your finances.
