What changed
RBI, after consulting IBA, clarified that for nomination forms under the Banking Companies (Nomination) Rules, 1985, only thumb impressions require attestation by two witnesses; signatures of account holders need not be witnessed. Additionally, RBI reiterated that nomination facility is available for joint deposit accounts, and banks must not dissuade customers from using it.
What it means for you
Banks can simplify their nomination form processing by not insisting on witness attestation for signatures, reducing customer friction. For joint accounts, banks must proactively offer nomination, ensuring compliance and better customer service. This aligns with earlier instructions and removes any ambiguity.
What you must do
- Update branch procedures to stop requiring witness attestation for signatures on nomination forms (DA1-3, SC1-3, SL1-3A); only thumb impressions need two witnesses.
- Ensure all joint deposit account opening processes include an explicit offer of nomination facility, regardless of mandate type.
- Train frontline staff on these clarifications to avoid dissuading customers from nominating.
- Review existing nomination forms and customer communications to align with this circular.
Who it affects
Regional Rural Banks (RRBs), All bank branches handling deposit accounts, safe custody articles, and safety lockers, Customers opening or holding joint deposit accounts
Do we need witnesses for signatures on nomination forms now?
No. Only thumb impressions require attestation by two witnesses. Signatures of account holders do not need any witness attestation.
Is nomination available for joint deposit accounts with 'Either or Survivor' mandate?
Yes. Nomination facility is available for all joint deposit accounts, including those with 'Either or Survivor' or any other mandate. Banks must offer it.