The new banking nomination framework provides for the nomination of up to four persons. It is important to distinguish between simultaneous and successive nominations for deposit accounts and the arrangements for lockers or safe custody.
Understand the Law and the Process
For a simultaneous nomination, the total of the specified percentages must equal one hundred. In a successive nomination, the order matters; it is not the same as giving everyone a share at the same time. A separate arrangement for successive nomination applies to lockers and safe custody. Use the bank’s correct form and obtain an acknowledgement, as simply writing four names in a general application may not be sufficient. The purpose of nomination is to simplify the settlement of a bank claim; it should not be treated as a complete substitute for a will or inheritance arrangements for every asset. It is useful to review the nomination if a previous nominee dies, family circumstances change, or account details are updated.
In Detail: What Could Affect the Outcome?
Carefully enter each person’s name, identity details, relationship and date of birth, and, where required, the relevant details for a minor nominee. For a joint account, check the account terms to understand who must give consent and when the nomination will take effect. Rather than relying on a verbal assurance that it has been “changed”, obtain an updated record or acknowledgement so that an error in the earlier nomination does not surface later.
What Should You Do?
- Decide whether you want a percentage-wise nomination for a deposit or an option based on a specified order.
- Provide accurate details on the bank’s current prescribed form and obtain an acknowledgement.
- If your will and estate records are inconsistent with the nomination, seek separate advice and clarify both arrangements.
Which Documents Should You Keep?
Keep the updated nomination form, the bank’s acknowledgement, the nominees’ identity details and the account particulars safely.
Hypothetical Example
A customer chose simultaneous shares for their spouse and children, but the total percentage did not equal one hundred. The form must be corrected and bank confirmation obtained; a family’s private list does not automatically change the bank’s records.
Does Percentage-Wise Nomination Work the Same Way for a Locker?
Arrangements for deposits, lockers and safe custody are not identical. Check the rules and bank form applicable to the relevant category separately.
Sources and Related Rules
- Bank nomination changes effective November 2025
- Shakti Yezdani v. Jayanand Jayant Salgaonkar — 2023 INSC 1076; effect of nomination of shares
Editorial review: 26 October 2026. This is general legal information. The outcome may vary depending on the facts of the case, applicable state law and subsequent amendments.