New Delhi: Bank accounts now have more flexibility when it comes to managing their finances. As a recent change in the law, now you can appoint up to four nominees for your bank account instead of just one. This update follows the passing of the Banking Laws (Amendment) Bill in the Rajya Sabha and is expected to help reduce unclaimed deposits while making it easier to plan and manage financial assets.
What’s New in Bank Nomination Rules
Earlier, bank account holders were allowed to name just one nominee to receive their funds after their passing. Now, with the updated rule, you can appoint up to four nominees. This gives you more control over how your money is distributed.
The amendment also introduces two ways to set nominations—simultaneous (all nominees share the funds together) and successive (funds go to the next nominee if the first isn’t available)—making the process of fund transfer more flexible and clear.
Simultaneous vs Successive Nominations: What’s the Difference?
Here’s a simple breakdown of the two nomination options now available for bank account holders:
Simultaneous Nomination
– You can assign specific percentages of your account balance to multiple nominees.
– The funds will be distributed exactly as per your chosen split.
Example: If your account has Rs 10 lakh and you nominate three people with a 40:30:30 split, the distribution will be Rs 4 lakh, Rs 3 lakh, and Rs 3 lakh respectively.
Successive Nomination
– This sets a priority order for fund transfer.
– If the first nominee is unavailable (e.g., has passed away), the next one in line receives the funds.
Example: If A is the first nominee but can’t receive the funds, they go to B. If B is also unavailable, they go to C.
This ensures your money always reaches someone you trust, even if the first nominee is unable to claim it.
Bank Locker Nomination: What’s Changed?
The updated amendment also covers bank lockers by introducing a change in the nomination process. Unlike deposit accounts, which allow both simultaneous and successive nominations, only successive nominations are allowed for lockers. This means that if the primary nominee is unavailable, the next person in line will receive access to the locker.
Impact on Unclaimed Deposits
This change is expected to help reduce unclaimed deposits, which have grown by 26 per cent from Rs 62,225 crore in March 2023 to Rs 78,213 crore in March 2024, according to RBI data. The new rules will also make it easier for families to access funds without facing legal complications.
