The Reserve Bank of India (RBI) on Friday asked banks to ensure that new and all existing customers have nominees in their deposit accounts and safety lockers. The central bank said that a large number of accounts do not have nominees.
Reserve Bank of India (RBI) on Friday asked banks to ensure nominees in deposit accounts and safety lockers of new and all existing customers. The central bank said that a large number of accounts do not have nominees. The nomination facility is intended to reduce the hardship of family members on the death of the depositor / depositors and to settle claims quickly. However, according to the central bank’s circular, based on the assessment of the Reserve Bank, it has been found that nominees are not available in a large number of deposit accounts.
It said, “In order to avoid inconvenience and unnecessary hardship to the family members of the deceased depositors, we emphasize the need to obtain the name of nominee for all existing and new customers holding deposit accounts, safe custody articles and safety lockers.”
RBI said that the Customer Service Committee (CSC) of the Board of Directors should review the achievement of enrollment coverage on a fixed period. The progress report in this regard should be given on the Reserve Bank’s Daksh portal on a quarterly basis starting from March 31, 2025.
Further, frontline staff at branches may be suitably trained to receive nominations as well as settle claims of deceased constituents in a proper manner and to deal with nominees/legal heirs, the circular said.
The account opening forms may be suitably modified (if not already done) to provide for customers to avail or opt for the nominee facility, the RBI said.
Apart from directly informing customers, the concerned banks and NBFCs have also been asked to publicise the benefits of using the nomination facility through various media, including launching campaigns from time to time to achieve full coverage of all eligible customer accounts.
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