Declaring a nominee in your bank account can be one of the easiest yet most significant financial decisions that you may do. While many people typically may open savings account, fixed deposit accounts, recurring deposits, or open lockers, they often forget to nominate someone. However, just forgetting to carry out this task might lead to serious legal and financial complications for you and your family members later on.
However, the good thing is that banks in India have simplified the process of nominating someone. With the latest changes in the banking policies, it’s now possible to add, update, change, or cancel nominee details easily. Moreover, with the introduction of nominees in bank accounts, many banks have taken the step further by allowing people to add multiple nominees for eligible accounts.
In this article, you How to Add or Change a Bank Nominee in bank accounts, the eligibility criteria, significance, process, FAQs, required documents, and other useful tips from experts.
What Is a Bank Nominee and How to Add or Change a Bank Nominee?
A bank nominee refers to the person identified by the account owner who can claim the amounts, deposits, lockers, etc. upon the demise of the account holder.
Furthermore, the nominee will guard the funds until the legal heirs have succeeded in their succession. By nominating someone, one makes the asset transfer easier.
Nomination can be availed of in case of:
- Savings Account
- Current Account
- Fixed Deposit (FD)
- Recurring Deposit (RD)
- Bank Locker
- Demat-linked bank services (where applicable)
Why Is it Important to Appoint a Nominee in Bank Transactions?
Nomination makes it easier to withdraw and use money in bank accounts and also helps in avoiding unnecessary legal proceedings and delays arising from the lack of nomination.
Here are some of the benefits of appointing a nominee:
- Faster Completion of Bank Transactions
Once the necessary nomination information is present with the bank, the process of fund release becomes quicker.
- Fewer Legal Hurdles
Nomination simplifies the process of withdrawing money and saves the family members or heirs from legal problems.
- Immediate Access to Money
Nomination ensures quick access of money to meet any critical expenses like medical bills etc.
- Convenient Procedure
Appointing or changing a nominee is a simple procedure which can be done through internet banking.
Who Is Eligible to be a Bank Nominee?
Essentially, any person can be nominated as a nominee by the bank customers.
The following persons are eligible for nomination:
- Spouse
- Parents
- Children
- Siblings
- Grandparents
- Friends
- Any other relative
- Any other trusted person
Nominees can be companies or organizations but not in the case of retail banking.
In case of the nominee being a minor, the bank customer has to appoint a guardian for receiving the money.
Is It Possible to Nominate Many People?
It is.
According to new banking regulations, multiple nominees have been allowed for certain eligible bank accounts.
People may select:
Nominations done at the same time
According to this option, different percentages are set for each nominee.
For instance,
- Nominee A will receive 50%;
- Nominee B will receive 30%;
- Nominee C will receive 20%.
- Nominations done in sequence
Here, if the first nominee is unavailable, then the next nominee becomes eligible by taking place of the first nominee.
Online Method to Add or Change a Bank Nominee
Most banks now provide nomination services through Internet Banking and Mobile Banking.
The exact interface may differ, but the overall process remains similar.
Step 1: Login
Log in using:
- Internet Banking
- Mobile Banking App
- Net Banking Portal
Step 2: Open Account Services
Navigate to:
- Profile
- Account Services
- Service Requests
- Nomination Services
Step 3: Select Nomination Option
Choose whether you want to:
- Add Nominee
- Update Nominee
- Change Nominee
- Cancel Nominee
Step 4: Enter Nominee Details
Fill in details like:
- Full Name
- Date of Birth
- Relationship
- Mobile Number
- Address (if required)
- Share Percentage (for multiple nominees)
Step 5: Verify Identity
Most banks verify the request using:
- OTP
- Debit Card Authentication
- Internet Banking Password
- Aadhaar-linked Mobile Verification
Step 6: Submit the Request
Review all information carefully before submission.
Save or download the acknowledgement receipt for future reference.
Offline Method to Add or Change a Bank Nominee
Customers who prefer visiting the branch can complete nomination by following these steps.
Step 1: Visit Your Bank Branch
Carry:
- Passbook
- Aadhaar
- PAN Card
- Identity Proof
Step 2: Fill the Appropriate Form
Banks generally provide separate forms such as:
- DA1 – Add Nominee
- DA2 – Cancel Existing Nominee
- DA3 – Modify Nominee
Step 3: Submit the Form
Submit the completed form with your signature to the bank representative.
Step 4: Verification
The bank verifies:
- Account ownership
- Signature
- Identity documents
Step 5: Receive Acknowledgement
Always collect:
- Acknowledgement receipt
- Reference number
- Updated passbook (if applicable)
Documents Required
Although online updates may require minimal documentation, branch visits usually require:
- Aadhaar Card
- PAN Card
- Passport (optional)
- Driving Licence
- Voter ID
- Passbook
- Bank Account Details
Some banks may ask for nominee identity proof if necessary.
Can You Change Your Nominee?
Absolutely.
You can update nomination whenever required.
Common reasons include:
- Marriage
- Divorce
- Birth of a child
- Death of nominee
- Family settlement
- Change in financial planning
The latest registered nomination generally replaces the previous one.
Can You Remove a Nominee?
Yes.
Banks allow customers to cancel nomination.
After cancellation, you may either:
- Leave the account without a nominee
- Register a new nominee
Updating the nomination immediately after cancellation is usually recommended.
Is the Nominee the Legal Owner?
This is a common misconception.
The nominee is not considered to be the legal owner of the funds in any case.
A nominee functions as a custodian or trustee through whom the funds are made available by the bank. The ownership of the funds will depend on the succession laws or inheritance rules prevailing at the time.
The funds will be paid to the legal heirs as per the applicable laws.
Nomination in Fixed Deposits
FD Nomination has its significance.
In case of the demise of the deposit holder before the maturity of FD, the nominee will receive the accrued amount after going through the requisite bank formalities.
Nomination can be done by the depositor at one of these times:
- At the time of opening an account.
- After the account has been opened.
- Online through electronic banking.
Nomination for Bank Lockers
Locker nomination helps family members access locker contents more efficiently after the death of the locker holder, subject to bank procedures and applicable regulations.
Without nomination, accessing locker contents can involve additional legal documentation.
Common Mistakes to Avoid
Avoid these common errors:
- Not adding any nominee.
- Entering incorrect nominee details.
- Forgetting to update nomination after marriage or family changes.
- Not informing the nominee about the nomination.
- Ignoring nomination for FDs and lockers.
- Losing the acknowledgement receipt.
- Assuming a nominee automatically becomes the legal heir.
Best Practices Recommended by Financial Experts
To keep your banking records up to date:
- Review your nomination details every few years.
- Update nominee information after major life events.
- Ensure your nominee’s contact information is current.
- Keep acknowledgement receipts safely.
- Inform trusted family members that a nomination has been registered.
- Check nomination details for every savings account, FD, RD, and locker separately.
When you add or update the nomination details in your bank account, you are doing one of the easiest and yet most important financial jobs which can be done in a few minutes yet it can save your family from a lot of trouble later on. Whether you go online to do it or simply go to your bank branch, updating the nomination details is one of the important things to do as part of financial planning.
Make sure that you check and update your nomination details whenever there are any major changes happening in your life.
Frequently Asked Questions (FAQs)
1. What is a bank nominee?
A bank nominee is a person authorized to receive the account proceeds or eligible assets after the account holder’s death, subject to applicable legal provisions.
2. Is adding a nominee mandatory?
While it may not be mandatory for every account, it is strongly recommended because it simplifies the settlement process for your family.
3. Can I change my nominee later?
Yes. You can change, update, or replace your nominee any time by following your bank’s prescribed procedure.
4. Can I have more than one nominee?
Yes. Eligible accounts may allow multiple nominees with specified shares or successive nominations, depending on current banking rules.
5. Can a minor become a nominee?
Yes. If the nominee is a minor, an adult guardian must be appointed to manage the funds until the minor becomes an adult.
6. Can I add a nominee online?
Yes. Most banks provide online nomination facilities through internet banking and mobile banking applications.
7. What forms are used for nomination?
Banks commonly use DA1 for adding a nominee, DA2 for cancellation, and DA3 for changing or modifying nomination details.
8. Does a nominee automatically become the legal heir?
No. A nominee receives the funds from the bank but the final ownership of the assets is governed by succession laws or a valid will.
9. Is nomination available for fixed deposits and lockers?
Yes. Nomination can generally be registered for savings accounts, fixed deposits, recurring deposits, and bank lockers.
10. What documents are required to add a nominee?
Generally, you may need identity proof, your account details, and the prescribed nomination form if applying through a bank branch.
