{"id":14449,"date":"2026-05-27T07:43:08","date_gmt":"2026-05-27T07:43:08","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/glossary\/nomination-in-bank-accounts\/"},"modified":"2026-05-27T07:43:08","modified_gmt":"2026-05-27T07:43:08","slug":"nomination-in-bank-accounts","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/nomination-in-bank-accounts\/","title":{"rendered":"Nomination in Bank Accounts"},"content":{"rendered":"<p><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nomination-in-bank-accounts\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Nomination in bank accounts<\/a> is a facility that allows the account holder to designate a person (nominee) who will receive the account proceeds in the event of the account holder&#x2019;s death. The nominee is not necessarily the legal heir; they are the person authorised to receive the funds from the bank.<\/p>\n<h2 id=\"what-is-nomination\">What Is Nomination?<\/h2>\n<p>Nomination is a simple administrative facility provided by banks and financial institutions. When the account holder dies:<br>\n&#x2013; The nominee can claim the account balance by submitting the death certificate and their identity proof<br>\n&#x2013; The bank releases funds to the nominee without requiring a <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/succession-certificate\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">succession certificate<\/a> or probate<\/p>\n<p>This makes it easier and faster for families to access funds immediately after a death.<\/p>\n<h2 id=\"nomination-vs-legal-inheritance\">Nomination vs Legal Inheritance<\/h2>\n<p>A nominee is a trustee, not an owner. The Supreme Court and various courts have held that the nominee receives the funds on behalf of the legal heirs. The actual legal ownership is determined by:<br>\n&#x2013; The deceased&#x2019;s will (if one exists)<br>\n&#x2013; Personal law succession rules (if no will)<\/p>\n<p>If the nominee and the legal heir are different people, the legal heirs can recover the funds from the nominee through legal proceedings.<\/p>\n<h2 id=\"types-of-accounts-where-nomination-is-available\">Types of Accounts Where Nomination Is Available<\/h2>\n<p>&#x2013; Savings accounts, current accounts, <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/fixed-deposit\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">fixed deposit<\/a>s<br>\n&#x2013; <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/demat-account\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Demat account<\/a>s (<a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/shares\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">shares<\/a>, <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/mutual-fund-units\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">mutual fund units<\/a>)<br>\n&#x2013; Insurance policies (beneficiary designation)<br>\n&#x2013; PPF, NSC, and other small savings schemes<br>\n&#x2013; Safe deposit lockers<\/p>\n<h2 id=\"making-a-nomination\">Making a Nomination<\/h2>\n<p>&#x2013; Fill Form DA-1 (for new accounts) or Form DA-2 (to change nomination)<br>\n&#x2013; Multiple nominees can be added with percentage shares for some instruments<br>\n&#x2013; Minor nominees require a guardian to be named<\/p>\n<h2 id=\"why-nomination-matters\">Why Nomination Matters<\/h2>\n<p>Without nomination, the bank will require:<br>\n&#x2013; <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/legal-heir-certificate\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Legal heir certificate<\/a> or succession certificate<br>\n&#x2013; No-objection from all heirs<br>\n&#x2013; Indemnity bond in some cases<\/p>\n<p>This can delay fund access by months.<\/p>\n<h2 id=\"key-takeaways\">Key Takeaways<\/h2>\n<p>&#x2013; Nomination designates who receives account proceeds on death; simplifies and speeds up fund access<br>\n&#x2013; Available for bank accounts, FDs, demat accounts, insurance, and small savings instruments<br>\n&#x2013; The nominee receives funds as trustee; legal heirs retain the ultimate ownership rights<br>\n&#x2013; Without nomination, heirs need legal certificates, causing significant delays<br>\n&#x2013; Always keep nominations updated after marriage, divorce, or death of the original nominee<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nomination in bank accounts is a facility that allows the account holder to designate a person (nominee) who will receive the account proceeds in the event of the account holder&#x2019;s death. The nominee is not necessarily the legal heir; they are the person authorised to receive the funds from the bank. What Is Nomination? Nomination [&#x2026;]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"_uag_custom_page_level_css":"","footnotes":""},"class_list":["post-14449","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"web-stories-poster-portrait":false,"web-stories-publisher-logo":false,"web-stories-thumbnail":false},"uagb_author_info":{"display_name":"Team Lemonn","author_link":"https:\/\/lemonn.co.in\/blog\/author\/ashu\/"},"uagb_comment_info":0,"uagb_excerpt":"Nomination in bank accounts is a facility that allows the account holder to designate a person (nominee) who will receive the account proceeds in the event of the account holder&#x2019;s death. The nominee is not necessarily the legal heir; they are the person authorised to receive the funds from the bank. What Is Nomination? Nomination&hellip;","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/14449","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":0,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/14449\/revisions"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=14449"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}