RBI Mandates Nominations for All Deposit Accounts and Safety Lockers to Aid Families

The Reserve Bank has instructed banks to ensure that all deposit accounts and safety lockers have nominations. This move aims to ease the process for family members to settle claims after a depositor's death. A significant number of accounts currently lack this facility, as noted in a circular from the central bank.

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To prevent difficulties for the families of deceased depositors, the Reserve Bank emphasised the importance of securing nominations for both new and existing customers. This applies to deposit accounts, safety lockers, and safe custody articles. The Customer Service Committee of the Board should periodically review the progress in achieving nomination coverage.

Nomination Coverage and Reporting

Banks are required to report their progress on nomination coverage quarterly on the Reserve Bank’s DAKSH portal, starting from 31 March 2025. Additionally, frontline staff at branches should be trained to handle nominations and claims from nominees or legal heirs appropriately.

The RBI suggested that account opening forms be updated to include an option for customers to choose or decline the nomination facility. Banks and NBFCs must also inform customers about the benefits of nominations through various media channels.

Public Awareness and Staff Training

To ensure full coverage of eligible customer accounts, banks are encouraged to conduct regular awareness campaigns. These efforts aim to educate customers about the advantages of having a nomination in place, thereby reducing potential hardships for families in the future.

By implementing these measures, the Reserve Bank seeks to streamline claim settlements and reduce inconvenience for families dealing with the loss of a depositor.