Opening a bank account is one of the most basic steps in managing personal finances. But an important feature often overlooked is “Nomination” in bank account. Nomination is a crucial step that ensures your loved ones can easily access your funds in case of unforeseen events.
In this article, we explain what nomination in a bank account means, why it is important, and how to submit the nomination application form.
What is Nomination in a Bank Account?
Nomination is a facility provided by banks and Financial Institution that allows a Account holder to name a person (nominee) who can receive the money in the account in case of the account holder’s death.
The nominee can be:
- A family member (spouse, children, parents)
- A trusted person (if there are no family members)
This facility is available for:
- Savings and current accounts
- Fixed deposits
- Recurring deposits
- Lockers
- Safe custody articles
Importance of Nomination in Bank Accounts
Easy Transfer of Funds: The nominee can claim the funds quickly and easily in case of the account holder’s death.
Avoids Legal Disputes: Reduces the chance of disputes among family members or legal heirs.
No Need for a Will: The bank can transfer the money without requiring a will or succession certificate.
Legally Recognized: The nomination is legally valid under Section 45ZA of the Banking Regulation Act.
Peace of Mind: Ensures that the account holder’s money reaches the right person without delays.
How to Nominate Someone?
You can add a nominee at the time of opening an account or later.
At the Time of Account Opening:
- Banks provide a nomination section in the account opening form.
- You simply fill in the nominee’s name, relationship, address, and age.
After Account Opening:
- If the Nominee is not submitted at the time of account opening, It can be added to the account any time after.
- Submit a separate Form DA1 (Nomination Form) to the bank details are given below.
- The bank will update the nominee details in its system.
Nomination Form
There are Three Forms for Addition/ Modification in Bank Nomination Details, they are as given below.
- DA1 – Addition of Nomination to the Bank Account (First Time)
- DA2 -Deletion of Nomination/ Nominee details from an Bank account.
- DA3 – Modification in the Nomination/ Nominee details already available in Bank Account.
DA1 – Addition of Nomination
Nomination Form DA1 is used for addition of Nomination in the account for the first time. This can be done at the time of the account opening. But, if not done the nomination details can be added to the account any time by visiting the branch.
Click on the link below to download nomination form.
Information to be filled in DA1:
- Account holder’s name and account number
- Nominee’s full name, address, age, and relationship
- Signature of account holder(s)
- Witness signatures (if applicable only for Thumb Impression customers)
You can get the form:
- From any bank branch
- On the bank’s official website
- Through online banking (in some banks)
DA2 – Deletion of Nomination
If you already added the Nomination to the account and for any reason you want to remove the Nomination details from your account. The same can be done by submitting the Form DA2 to the bank.
DA3 – Modification of Nomination
If the nomination is already registered in your account and you want to name, the different person as a nominee you have to submit Form DA3 as given below.
Important Points to Remember
- Give the nominee details as accurate as possible to smoother claim process.
- In case of joint accounts, all holders must sign the nomination form.
- The nominee does not become the legal heir—they are merely a trustee of the funds unless legally declared.
- Always keep the nominee informed about the nomination and account details.
Conclusion
Nomination in a bank account is a simple but powerful step in estate planning. It ensures that your hard-earned money reaches the right person without delay or legal hassle. Whether you’re opening a new account or already have one, take a moment to check if you have added a nominee—it’s a wise financial move.
FAQs on Bank Account Nomination
Q1: Is nomination mandatory in a bank account?
No, but it is highly recommended for smooth transfer of funds in case of the account holder’s death.
Q2: Can I have more than one nominee?
Only one nominee is allowed per individual account. Joint holders can nominate together.
Q3: Can a minor be a nominee?
Yes, but the account holder must appoint a guardian to receive funds on the minor’s behalf.
Q4: What happens if no nominee is added?
The legal heirs will have to produce a succession certificate, which can be time-consuming.
Q5: Is nomination the same as a will?
No. Nomination is a banking process. A will governs overall inheritance, but banks rely on nomination for fund release.