What changed
RBI observed that a large number of deposit accounts lack nomination, causing hardship to survivors. It now mandates that Customer Service Committees or Boards periodically review nomination coverage. Supervised entities must report progress quarterly on the DAKSH portal from March 31, 2025. Frontline staff must be sensitized, and account opening forms must include a clear opt-in/opt-out for nomination.
What it means for you
Banks and NBFCs must prioritize obtaining nominations for all existing and new customers across deposits, safe custody articles, and lockers. This will reduce claim settlement delays and legal disputes for families. Quarterly reporting adds compliance burden but improves customer service. Boards need to actively monitor coverage metrics.
What you must do
- Review all existing deposit, safe custody, and locker accounts to identify those without nomination and initiate outreach drives.
- Modify account opening forms to include a clear provision for customers to avail or opt out of nomination facility.
- Sensitize frontline staff on obtaining nominations and handling claims of deceased constituents and nominees.
- Ensure Customer Service Committee or Board reviews nomination coverage periodically and reports progress on DAKSH portal quarterly from March 31, 2025.
- Launch media campaigns and periodical drives to publicize benefits of nomination facility to achieve full coverage.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), All Primary (Urban) Co-operative Banks, All Deposit Taking NBFCs (excluding HFCs), Customer Service Committees and Boards of supervised entities, Frontline branch staff handling account opening and claims
What is the deadline for starting quarterly reporting on nomination coverage?
The first quarterly report on the DAKSH portal is due by March 31, 2025, and must continue every quarter thereafter.
Does this apply to all types of accounts or only deposit accounts?
It applies to deposit accounts, safe custody articles, and safety lockers for all existing and new customers.
What if a customer does not want to provide a nomination?
Account opening forms must include a provision for customers to either avail or explicitly opt out of the nomination facility.