The Reserve Bank of India states that the nomination facility should be available for all types of bank deposit accounts.
Nomination can make settlement easier for the family if the account holder dies. This is particularly important for savings accounts, fixed deposits and other deposit accounts.
For example, if a person has a ?5 lakh fixed deposit and has registered a nominee, the nominee can approach the bank for settlement after the depositor’s death, subject to the prescribed procedure.
RBI has also directed banks to provide acknowledgement when a nomination, cancellation or variation is registered.
Who should act: Anyone holding bank accounts or fixed deposits.
Action: Check whether your savings accounts, FDs and RDs have an active nominee and whether the nominee details are current.
