Ensure nominations in all accounts, lockers: RBI to banks

Mumbai: The Reserve Bank on Friday asked banks to ensure nominations in new and all existing customers' deposit accounts and safety lockers, highlighting that a large number of accounts do not have nominations.

The nomination facility is intended to minimise the hardship and facilitate expeditious settlement of claims of the family members on the death of depositor/s.

However, on the basis of the Reserve Bank’s supervisory assessment, it is observed that in a large number of deposit accounts, nomination is not available, according to a central bank's circular.

"To avoid inconvenience and undue hardship to survivors/ family members of deceased depositors, we reiterate the need to obtain nomination in case of all existing and new customers having deposit accounts, safe custody articles and safety lockers, as the case may be," it said.

The RBI further said Customer Service Committee (CSC) of the Board/ Board of Directors should review, on a periodic basis, the achievement of nomination coverage.

Progress in this regard should be reported on the Reserve Bank’s DAKSH portal on a quarterly basis, starting from March 31, 2025.

Further, the frontline staff in the branches may be suitably sensitised for obtaining nomination as well as appropriate handling of claims of deceased constituents and dealing with nominees/ legal heirs, the circular said.

The account opening forms may be modified suitably (if not already done) with provision for the customers to avail or opt out of the nomination facility, the RBI said.

Apart from directly notifying the customers, banks and NBFCs concerned have also been asked to publicise the benefits of using the nomination facility through various media, including launching periodical drives towards achieving full coverage of all eligible customer accounts.