Nomination Facility is available in Savings Account in India as per RBI guidelines. The account holder/s can appoint a nominee in his/ her/ their Savings account. At the time of opening of account, the nomination form is available in account opening form. The customer can mention the name of the nominee in the required form. The nomination can be made only in favour of an individual and not in favour of Trust, Society, etc.
Account holder/s can make nomination by filling up the Form prescribed under the Banking Companies (Nomination) Rules 1985.
The nominee is a trustee for legal heirs for receiving the money or proceeds of the account after the demise of the account holder/s. On the event of account holder's death, the nominee has the right to claim the proceeds of the savings account. Nomination enables banks for faster and easier release of funds/ proceeds of that account in the name of the nominee without insisting upon a will or probate, succession certificate or letter of administration.
Nomination facility is not available in case of accounts opened in the name of a minor which is a self operated minor account. In case of a joint holding, nomination should be made by all the account holders jointly. An NRI can be made a nominee in a resident account.
As per the prevailing Banking Companies (Nomination) Rules, there can be only one nominee per account. However, the nomination can be changed subsequently anytime by the account holder/s by making a declaration to that effect, in the appropriate form.