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All about ‘Nominees’
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All about ‘Nominees’

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Every time you fill up a form for an investment, whether it’s a Fixed Deposit or Insurance, Shares or a Mutual Fund or even if you’re opening a new bank account, there will be a separate section that will ask you to mention a ‘Nominee’. This column is often left blank by a lot of people who are investing or opening an account, but it shouldn’t be, and here’s why.

What is Nomination?

  • A nominee is a person or entity designated to receive assets or account information in the event the account holder passes away.
  • Nominees can be named for financial accounts, such as brokerage accounts, mutual fund accounts, and bank accounts.

Why should I appoint an Nominee?

  • It is important to appoint a nominee, as it allows your family to access your funds in case you pass away. The process to transfer assets of the deceased account holder to the nominee is simple.
  • However, this process can take time where the account holder has not appointed a nominee, as the bank will require additional documentation to prove that the representative requesting access is the legal heir of the deceased.
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As per RBI, thousands of crores of unclaimed assets are lying across the country. These are assets lying in accounts where the original owner has not claimed the asset, or is deceased and had not filed nomination details. Read more here.

What is the process to access funds in the account of the deceased?

The process is different in case the account holder has appointed a nominee.

Nominee Appointed

  • The nominee can approach the bank with the death certificate of the deceased and his / her proof of identity to be authenticated.
  • The process of transferring funds into the nominee account takes about 6 to 12 months.

Nominee Not Appointed

  • In case there is no nominee, the bank/ DP will need clarity on who is the rightful owner of the money. Either of the following documents will be required:
    • Will: A signed and registered by the deceased account holder. The will must clearly mention the owner of the funds / investments and how it will be bequeathed.
    • Succession Certificate: In absence of a will, you will require a succession certificate, which will be the legal document issued by a court certifying that you are the rightful owner of the funds / investments.
  • In case of multiple claimant, the bank. may request other documents such as court order, family agreement, affidavits from other claimants etc.
  • The process of transferring funds into the nominee account takes about 6 to 12 months, once the bank has authenticated the legal heir.

How to appoint/ update my Nominee? (Online)

Most banks allow you to view, as well as update your nominee via Netbanking.

To update your nominee details for your bank account via netbanking, log in to your netbanking account and navigate to the nominee section. From there, you can add, remove, or update your nominee information. Save your changes to complete the update.

Please see list of banks below for detailed stepwise instructions

HDFC Bank
Netbanking
Union Bank
Netbanking
IDFC First
Netbanking
Bank of Baroda
Netbanking
Bank of India
Netbanking
ICICI Bank
Netbanking
UCO Bank
Netbanking
Kotak Mahindra
Netbanking
Axis Bank
Netbanking
Yes Bank
Netbanking
AU Small Finance Bank
Netbanking
IndusInd Bank
Netbanking
Canara Bank
Netbanking

Where can I view my Nominee details? (Offline)

The nominee details may be present on your passbook, or can be inquired at the nearest bank branch.

You can visit any branch of your bank and fill out a form to update your nominee. You can obtain the relevant form at a bank branch, on your bank’s website. Please confirm which form you will require below.

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Form DA1: Addition of Nominee

Add a Nominee for the first time.

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Form DA2: Deletion of Nominee

Remove a Nominee already appointed

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Form DA3: Modification of Nominee

Remove a nominee, and appoint another nominee in their place.