What changed
RBI observed that some RRBs fail to acknowledge nomination forms or provide acknowledgements to customers. The circular reinforces existing rules requiring written acknowledgement for nomination, cancellation, or variation, and directs RRBs to record nomination status on passbooks and term deposit receipts. It also encourages indicating the nominee's name on documents if the customer agrees.
What it means for you
RRBs must tighten their operational processes to ensure every customer receives a written acknowledgement for nomination-related submissions, regardless of whether they ask for it. This reduces legal ambiguity for claimants after a depositor's death. Banks need to update their passbook printing systems and staff training to comply without fail.
What you must do
- Implement a system to issue written acknowledgements for all nomination, cancellation, or variation forms submitted by customers.
- Print 'Nomination Registered' on the face of passbooks and term deposit receipts for accounts with active nominations.
- Offer to print the nominee's name on passbooks, statements, or FDRs if the customer consents.
- Train branch staff on the mandatory nature of these acknowledgements and record-keeping.
- Audit current practices to ensure no customer is denied an acknowledgement, even if not demanded.
Who it affects
Regional Rural Banks (RRBs), RRB customers (depositors and locker hirers), Nominees of RRB account holders
Do we need to give an acknowledgement even if the customer doesn't ask for it?
Yes, the circular explicitly states that acknowledgement must be given to all customers irrespective of whether they demand it or not.
Can we print the nominee's name on the passbook without the customer's consent?
No, the circular advises indicating the nominee's name only if the customer is agreeable to it. Consent must be obtained first.
What should we do if our current system doesn't print 'Nomination Registered' on passbooks?
You must upgrade your passbook printing system to include this legend for accounts with nomination. For existing passbooks, consider issuing a supplementary slip or sticker until the next update.