What changed
RBI issued a clarification on March 26, 2012, following queries from banks. It reiterated that for all nomination forms (DA1, DA2, DA3 for deposits; SC1, SC2, SC3 for safe custody; SL1, SL1A, SL2, SL3, SL3A for lockers), only thumb impressions must be attested by two witnesses. Signatures of account holders do not require witness attestation.
What it means for you
Banks can simplify their nomination form processing by not insisting on witness attestation for signatures, reducing customer friction. This aligns with earlier instructions from March 2011 and ensures uniform compliance across all scheduled commercial banks (excluding RRBs). Lenders should update their internal procedures and staff training to reflect this rule.
What you must do
- Update branch operating instructions to remove witness attestation requirement for signatures on nomination forms.
- Ensure staff are trained to only require two witnesses for thumb impressions on forms DA1-DA3, SC1-SC3, and SL1-SL3A.
- Review existing nomination forms and related checklists to align with this clarification.
- Communicate this change to all branches and customer-facing teams to avoid unnecessary rejections.
Who it affects
All scheduled commercial banks (excluding RRBs), Branch operations teams handling nomination forms, Customers opening or updating deposit accounts, safe custody articles, or safety lockers
Do signatures on nomination forms need to be attested by witnesses?
No, as per RBI's clarification, only thumb impressions require attestation by two witnesses. Signatures of account holders do not need witness attestation.
Which nomination forms are covered by this clarification?
All forms under the Banking Companies (Nomination) Rules, 1985: DA1, DA2, DA3 for deposits; SC1, SC2, SC3 for safe custody; and SL1, SL1A, SL2, SL3, SL3A for safety lockers.
Does this apply to Regional Rural Banks (RRBs)?
No, the circular is addressed to all scheduled commercial banks excluding RRBs.