What changed
RBI, after consulting IBA, clarified that signatures on nomination forms (DA1, DA2, DA3) do not require witness attestation, only thumb impressions need attestation. Additionally, RBI explicitly stated that nomination facility is available for joint deposit accounts, including those with 'Either or Survivor' mandate, addressing reports that customers were being dissuaded from using it.
What it means for you
Banks must update their internal procedures and staff training to stop insisting on witness attestation for signatures on nomination forms, reducing customer friction. For joint deposit accounts, banks must actively offer nomination facility and not discourage customers, ensuring compliance with the Banking Regulation Act provisions.
What you must do
- Update branch-level procedures to accept nomination forms DA1, DA2, DA3 without witness attestation for signatures.
- Train frontline staff to offer nomination facility to all joint deposit account holders, including those with 'Either or Survivor' mandate.
- Audit current practices to ensure no branch is dissuading customers from exercising nomination rights on joint accounts.
- Communicate the clarification to all branches and ensure strict compliance with the revised instructions.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Branch managers and frontline staff handling deposit accounts, Customers opening or maintaining joint deposit accounts, Compliance and legal teams at banks
Do I need witnesses to attest my signature on nomination forms?
No, as per RBI's March 2011 clarification, only thumb impressions require witness attestation; signatures on forms DA1, DA2, and DA3 do not need attestation.
Can I nominate a person for my joint deposit account?
Yes, nomination facility is available for all joint deposit accounts, including those with 'Either or Survivor' mandate. Banks must offer this facility.