Bank lockers continue to be one of the most trusted options for Indians to store their valuable assets like gold, important documents, and cash. Recognizing the growing need for security, transparency, and ease of inheritance, the Indian government has made a major update in the bank locker nomination rules.
This change is part of the Banking Laws (Amendment) Bill, which was passed in the Rajya Sabha recently. Here's everything you need to know about the new rules and how they impact you as a bank account or locker holder.
What's Changed in the New Rule?
Under the previous rules, a bank account or locker holder could nominate only one person. In case the account holder passed away, only that single nominee was entitled to claim the amount or contents of the locker.
But now, things are changing for the better.
As per the new rule:
Account holders can nominate up to four individuals.
The account holder can also assign a percentage share to each nominee.
This helps in clear distribution and avoids legal or family disputes after the account holder’s death.
Why Is This Rule Important?
Disputes related to inheritance and bank accounts are very common in India, especially when there's no clarity on who is entitled to what share. Many families face emotional and legal struggles after the death of a loved one simply because there was only one nominee, or sometimes none at all.
This new rule aims to solve those issues by:
Giving more flexibility to account holders
Making inheritance more transparent and fair
Allowing family members to be equally involved in financial planning
Reducing the burden on courts and legal systems
Two Types of Nomination Methods Introduced
The Reserve Bank of India (RBI) has allowed two nomination styles under the updated guidelines:
1. Simultaneous Nomination
Here, you can add multiple nominees at once.
You can also specify the percentage of share for each nominee.
Example:
If you have ₹8 lakh in your bank account and three nominees – your spouse, son, and daughter – you can assign the amount like this:
Spouse – ₹4 lakh (50%)
Son – ₹2 lakh (25%)
Daughter – ₹2 lakh (25%)
This method gives a clear structure to the distribution and reflects your personal wishes accurately.
2. Successive Nomination
This works on a priority basis.
You choose nominees in a sequence.
If the first nominee is not alive or not available, the next nominee gets the claim.
Example:
First nominee – Wife
Second nominee – Son
Third nominee – Daughter
If your wife is not alive at the time of claim, your son will receive the amount. If he’s also not available, it will go to your daughter.
This method is helpful if you want your primary nominee to inherit everything, and others to act as backups.
Who Can Be a Nominee?
A nominee can be:
Your spouse
Children
Parents
Siblings
Even friends or any trusted individual
You just need to provide:
Their full name
Relationship with you
Address and identity proof
And mention the share (if simultaneous nomination)
How to Update or Add Nominees?
If you're already an account or locker holder, here’s how you can update your nominee details under the new rule:
Visit your bank branch or log in to your bank's internet banking portal.
Ask for the Nomination Form or use the online nomination feature.
Fill in the details of up to four nominees.
Choose between Simultaneous or Successive nomination method.
Mention the share percentage (if applicable).
Submit the form and get an acknowledgment receipt.
Banks have been directed to assist customers actively in updating these details.
Benefits of the New Rule
Fair Distribution: Assets can now be divided justly among loved ones.
Avoids Legal Confusion: With multiple nominees clearly listed, the chances of court battles are reduced.
Protects Interests of All Family Members: No one is left out or unfairly treated.
Peace of Mind: You can now plan your wealth and its transfer in a systematic way.
What If You Don't Nominate Anyone?
If you don’t have any nominee listed:
The legal heirs (as per the succession law) will have to apply.
They may need to submit a succession certificate or go through legal processes.
This can be time-consuming, costly, and stressful for the family.
So, it’s strongly recommended to add or update your nomination details as soon as possible.
What Experts Are Saying
According to banking experts:
“This is a customer-friendly move that empowers account holders and reduces family disputes.”
“The new nomination system will bring more clarity in financial matters, especially in joint families.”
“With increasing digital adoption, banks should make online nomination easier and more accessible.”
Final Thoughts: A Positive Step Towards Financial Planning
The new Bank Locker Nomination Rule is a progressive reform. It reflects the government’s intent to make financial systems more inclusive, transparent, and customer-centric.
If you want your wealth to be distributed smoothly and without conflict after you, take advantage of this rule today. Adding nominees takes just a few minutes but can save your family from years of legal trouble.
Action Steps for You:
Visit your bank or log in to your online account
Check if you have a nominee
If not, add up to four under the new rule
Choose Simultaneous or Successive method
Ensure your loved ones are protected
Remember: Nominating wisely today ensures peace of mind tomorrow.
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