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Nominations and your will

A nominee is the person a bank, company or fund pays, or transfers an asset to, after your death. For bank deposits and shares, being the nominee does not by itself make that person the owner: your will or, if there is none, the law of succession decides who keeps it. Life insurance has its own rule

A nominee is the person a bank, company or fund pays, or transfers an asset to, after your death. For bank deposits and shares, being the nominee does not by itself make that person the owner: your will or, if there is none, the law of succession decides who keeps it. Life insurance has its own rule: a parent, spouse or child you nominate is "beneficially entitled" to the money under the Insurance Act, but High Courts disagree on whether that gives way to your heirs, and we found no Supreme Court ruling on it.

A nomination is not a will

A nomination tells a bank, company or fund whom to pay, or transfer an asset to, after your death, so that the asset can be dealt with straight away.

In a case about shares and other securities, the Supreme Court held that a nomination is not a "statutory testament" (a will made by law), and that it creates no third way of inheriting alongside a will and the law of succession. Among its reasons: company law does not deal with succession, and a nomination does not go through the formalities a will needs. The Court gave the signing and witnessing rules of section 63 of the Indian Succession Act as its example. Where there is a will, the executor (the person the will appoints to carry it out) or an administrator (a person a court appoints) works out who inherits under it; where there is none, the law of succession decides (Shakti Yezdani v. Jayanand Jayant Salgaonkar, Supreme Court, 2023). The Supreme Court had said the same of life insurance nominations under the Insurance Act as it stood before 2015 (Sarabati Devi v. Usha Devi, Supreme Court, 1983).

Which law of succession applies can depend on your religion (Indian Succession Act, section 29); see the note "Succession without a will". The rulings below say what the nomination laws mean. They do not set what each heir receives.

Shares and demat accounts

  • You may nominate a person in whom your securities "shall vest" (pass) on your death. The nominee then becomes entitled to all your rights in them, to the exclusion of everyone else, unless you have changed or cancelled the nomination (Companies Act, 2013, section 72(1) and (3)).
  • The Supreme Court read the same rule in the older Companies Act, 1956 (section 109A, which it treated as the same in substance as section 72), together with the depositories' bye-laws (their rules). It held that the securities vest in the nominee only for a limited purpose: so that the company can deal with them straight after the death, with no doubt about who holds them. This does not make the nominee the owner. The arrangement lasts until the heirs settle the estate, and the heirs can still seek the securities from the nominee (Shakti Yezdani v. Jayanand Jayant Salgaonkar, Supreme Court, 2023).
  • In that case the Court upheld a Bombay High Court decision which had held, among other things, that a gift of shares in a will takes priority over a nomination. The Supreme Court agreed with that decision in general terms and did not discuss this point separately (Shakti Yezdani v. Jayanand Jayant Salgaonkar, Supreme Court, 2023).
  • Your depository participant (the firm that keeps your demat account, the account that holds your shares electronically) must let you nominate a person in whom your securities vest on your death. You may also nominate a person to act for you if you become unable to act yourself. Joint holders may together nominate a person in whom the securities vest on the death of all of them (SEBI (Depositories and Participants) Regulations, 2018, regulation 60A).
  • SEBI's circular of 23 July 2026 on transmission (passing securities on after a death) says that, for listed securities and mutual fund units, nominees receive a deceased holder's assets "as trustee on behalf of legal heir(s)": they hold them for the people who inherit. It also says that when one joint holder dies, the securities pass to the surviving joint holders, who need give only a copy of the death certificate (Annexure, paragraphs 4.1.1 and 7).

Mutual funds

  • The fund house must give every unitholder (investor) the option to nominate a person in whom the units vest on the unitholder's death "as trustee on behalf of the legal heir", and a person to act if the unitholder becomes unable to act. Joint unitholders may nominate together (SEBI (Mutual Funds) Regulations, 2026, regulation 27, in force from 1 April 2026).
  • From 1 September 2026, SEBI's norms for demat accounts and mutual fund folios (your account with a fund house) allow up to three nominees. A new account in one name needs a nomination unless you opt out by a declaration; for a joint account it is optional. If you do not state each nominee's share, they share equally. A paper form signed in ink needs no witness; one signed with a thumb impression needs two. An online nomination is confirmed by an electronic signature or by two-factor authentication with a one-time password. The norms apply to existing accounts too (SEBI circular of 29 May 2026, paragraphs 4 to 7, 11 and 13).

Bank deposits, lockers and safe custody

  • Since 1 November 2025, you can nominate up to four persons for a deposit, either successively or simultaneously. Before, the law allowed one (Banking Regulation Act, 1949, section 45ZA(1), as amended by the Banking Laws (Amendment) Act, 2025, section 10).
  • Successively means one at a time, in the order you set. A lower nominee takes only after every nominee above them has died. If you set no order, the order of the names counts (section 45ZG).
  • Simultaneously means all at once, each with a share you state as a percentage, and the shares together must cover the whole deposit. A simultaneous nomination that does not meet these terms is invalid, as if none had been made. If one of these nominees dies before receiving the money, only that person's part is treated as having no nominee (section 45ZA(1B)).
  • For a locker, or for articles left with a bank in safe custody, you can nominate up to four persons, successively only (sections 45ZC and 45ZE; Banking Companies (Nomination) Rules, 2025, rules 3 and 4).
  • For a joint deposit, the nominee comes in only after all the depositors have died (section 45ZA(1)), and a nomination can be cancelled or changed only by all the depositors together (rule 2).
  • A later nomination cancels or changes the earlier one, and a nomination continues when the deposit is renewed. If a nominee is a minor, you may appoint an adult to receive the money for them (rule 2).
  • You can nominate on the form attached to the Rules, or online where your bank offers it (rule 2(2)). A will cannot be made that way; see the note "A will cannot be signed electronically".
  • These sections of the Act apply to co-operative banks too (section 56).

What a bank nominee receives

On your death, the nominee becomes entitled to all your rights in the deposit, to the exclusion of all other persons (section 45ZA(2), which the 2025 amendment did not change). The Supreme Court has held that this lets the nominee receive the money, but does not make the nominee its owner. The money forms part of your estate (what you leave) and passes under the rules of succession that govern you (Ram Chander Talwar v. Devender Kumar Talwar, Supreme Court, 2010).

A payment to the nominee releases the bank, but leaves untouched any right another person has against the person paid (section 45ZA(4)).

When a bank deals with a nominee

The Reserve Bank of India's directions to commercial banks, in the version updated on 1 April 2026, say:

  • When you open an account, the bank must explain nomination, and must not refuse or delay the account only because you decline to nominate. It must acknowledge a nomination within three working days, and your passbook, statement or term deposit receipt must show "Nomination Registered" with the nominee's name.
  • After a death, for the payment to release the bank, the bank must have made clear to the nominee, in writing, that they receive the money as a trustee of the legal heirs (the people who inherit). The bank must not insist on probate (a copy of the will certified under a court's seal), a succession certificate or letters of administration (other court grants), or an indemnity bond, whatever the amount. It asks for its form, the death certificate and an officially valid document (a proof of identity) for the nominee.
  • The time limit is 15 calendar days from the day the bank receives all the documents. For a deposit, if a delay is the bank's fault, it must pay interest for the delay. For a locker or articles in safe custody, it must pay a fixed sum for each day it misses the time limit.
  • For a locker, the nominee is told that access is given only as a trustee of the legal heirs, and the contents are listed in an inventory before two independent witnesses who are not bank employees or former employees.
  • Without a nominee, the bank asks for more documents. If there is an undisputed will, the bank may choose to act on it without probate, but that is at the bank's discretion.

Urban co-operative banks follow their own directions, with the same 15-day limit. Other kinds of bank have their own directions too, so ask your bank. The Reserve Bank has updated its directions to commercial banks and to urban co-operative banks since April 2026, and we could not read the later versions, so ask your bank how it applies them today.

Life insurance

  • Before the 2015 amendment. Under section 39 of the Insurance Act, 1938 as it then stood, a nomination only showed who was authorised to receive the money. It gave the nominee no beneficial interest (no right to keep the money for themselves), and the heirs could take it under the law of succession that governed them (Sarabati Devi v. Usha Devi, Supreme Court, 1983).
  • The beneficial nominee. Section 39 was replaced by the Insurance Laws (Amendment) Act, 2015, with effect from 26 December 2014. Now, if you hold a life policy on your own life and nominate your parents, your spouse, your children, or your spouse and children, or any of them, they are "beneficially entitled" to the amount payable, meaning entitled to it for their own benefit. The exception is where it is proved that, because of the way you held the policy, you could not give them that right (section 39(7)). This applies to policies that mature for payment after the 2015 Act came into force (section 39(10)).
  • If such a nominee survives you but dies before being paid, their share goes to their own heirs or legal representatives (section 39(8)). Your creditors' right to be paid out of the policy money is not affected (section 39(9)).
  • The beneficial-nominee rule covers only parents, spouse and children. It does not cover anyone else you nominate (section 39(7)).
  • Not yet settled. High Courts have given different answers on whether the beneficial-nominee rule gives way to the law of succession when the heirs ask for their shares (as recorded by the High Court of Kerala, judgment of 14 August 2025, 2025:KER:61164, paragraphs 8 to 10). We found no Supreme Court ruling on it when we read the texts on 21 October 2026.
  • Changing a nomination. Before the policy matures, you can cancel or change a nomination by an endorsement (a written change made on the policy) or by a will (section 39(2)). Until the insurance company has written notice of the change, it is not liable for paying, in good faith, the nominee on its record (section 39(2)).
  • The 2025 amendment. The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, in force from 5 February 2026 except for one section, did not change the beneficial-nominee rule. Its only change to section 39 is a drafting one, to a pronoun. It also requires insurance companies to keep a record of every nomination they have notice of (new section 14 of the Insurance Act).
  • Section 39 does not apply to a policy to which section 6 of the Married Women's Property Act, 1874 applies (section 39(12)). If you are not sure whether your policy is one of these, ask the insurance company.

The Employees' Provident Fund

  • The Employees' Provident Funds Scheme, 2026 (G.S.R. 525(E), a notification dated 29 June 2026) replaced the 1952 Scheme.
  • You nominate by a declaration on the portal the Scheme designates, and you may divide the balance among your nominees as you choose (paragraph 44(1) and (2)).
  • If you have a family, you may nominate only members of your family; a nomination of anyone else is invalid (paragraph 44(3)). "Family" has the meaning given in the Code on Social Security, 2020: your spouse, and children, parents and some others who meet the Code's conditions, mostly about age and dependence (section 2(33)).
  • When you marry, you must make a fresh nomination, and any nomination made before the marriage is treated as invalid. If you have no family, you may nominate anyone, but that nomination is treated as invalid once you acquire a family (paragraph 44(3) and (4)). This is a provident fund rule. It is separate from the rule on whether marriage revokes a will.
  • A nomination made under the 1952 Scheme is void so far as it conflicts with the 2026 Scheme, and every member must file a nomination under the 2026 Scheme (paragraph 44(3), first proviso).
  • If a nominee dies before you, their part comes back to you, and you may nominate again (paragraph 44(7)).
  • On a member's death, the balance is paid to the nominee. Where there is no nomination, or for any part not nominated, it is paid in equal shares to the family members the Scheme lists, and otherwise to the person legally entitled to it (paragraph 50).

Government and Railway provident funds

  • For the provident funds of government and railway employees, a properly made nominee is entitled, to the exclusion of everyone else, to receive the money, unless the nomination has been changed or cancelled, or has become invalid because something it names has happened (Provident Funds Act, 1925, section 5(1)).
  • A central government employee nominated his mother when he joined service, on a form that said the nomination would become invalid once he had a family. He married, but never changed it. The Supreme Court held that the nomination had become invalid on his marriage, that keeping it up to date was his duty, and that it gave his mother no better right than his widow. The fund was shared equally between them (Bolla Malathi v. B. Suguna, Supreme Court, 2025).
  • In a 2026 order about a central government employee's provident fund, where the employee left no family, the Supreme Court said the money must be released to a valid nominee without insisting on a succession certificate or probate. It added that this does not decide who finally owns the money: the nominee collects it as a trustee, and others entitled may seek their share from the nominee in court. The Court was declining to hear the government's appeal, and said it could look at the merits if someone else with an interest challenged the High Court's decision (Union of India v. Paresh Chandra Mondal, Supreme Court order, 2026).
  • In an earlier case, about a bank employee's provident fund, the Supreme Court said that a nominee may receive the amount, but what is received is to be distributed according to the law of succession, and that a nomination gives the nominee no beneficial interest (Shipra Sengupta v. Mridul Sengupta, Supreme Court, 2009).

Post office and other government savings schemes

  • Under the Government Savings Promotion Act, 1873, depositors "shall designate" (must name) one or more individuals as nominees. A nominee is entitled to receive the sum due "as an owner or a trustee" (a person who holds it for others), to the extent you specify when you nominate (section 4(1), as substituted with effect from 1 April 2018).
  • The Act now also covers savings certificates and the Public Provident Fund, which used to have their own Acts. Old certificates and accounts are treated as held under the new schemes, without harming existing depositors' interests (section 16).
  • Under the old savings certificates law, the Supreme Court held that a nominee had the right to be paid, but kept the money for the people entitled under the law of succession (Vishin Khanchandani v. Vidya Lachmandas Khanchandani, Supreme Court, 2000).
  • We found no court ruling on what choosing "owner" means when a will or the heirs say otherwise. If it matters to you, ask an advocate.
  • The Reserve Bank's rules for settling a deceased customer's account do not apply to government savings schemes that banks run, such as the Senior Citizens' Savings Scheme and the Public Provident Fund.

A flat in a co-operative housing society

  • In a case from West Bengal, the Supreme Court held that where a member of a co-operative housing society had validly nominated someone, the society had to transfer the member's share and interest in the flat to the nominee. Under the rules there, a member with a family could nominate only a family member. The Court also said that this transfer has no bearing on who owns the flat as between the heirs, who remain free to pursue their rights in law. Elsewhere in the same judgment, the Court called the heirs' right a "subservient right" and said the share passes by succession only if no nomination was made. The two passages pull in different directions, so if it matters to you, ask an advocate (Indrani Wahi v. Registrar of Co-operative Societies, Supreme Court, 2016).
  • The case turned on the wording of West Bengal's co-operative societies law. We have not read other states' laws, so ask your society what its rules and your state's law say.

Good practice: keeping nominations and your will in step

These are Waseeyat's recommendations, not rules of law.

  1. List each asset and its nominee. Write down each account, deposit, locker, policy, provident fund and folio, the nominee on record for each, and where the papers are. Check that your bank passbook or statement shows "Nomination Registered"; if it does not, ask the bank.
  2. Keep nominations current. Look at them again after a marriage, a birth or a death in the family, or when a nominee can no longer act. For the Employees' Provident Fund this is also the law: a nomination made before marriage is treated as invalid, so a fresh one is needed (paragraph 44(3)).
  3. Make your will and your nominations point the same way. If you want an asset to go to someone other than its nominee, say so clearly in your will and change the nomination too, so that the two do not pull in different directions. If your will changes a life insurance nomination, also send the insurance company written notice (see section 39(2) above).
  4. Tell each nominee their role. Tell them what they are nominated for and, for most assets, that they may be receiving it for the people your will or the law names, not for themselves.

How Waseeyat helps

  • When you list what you own, Waseeyat's questionnaire asks for the nominee on record for each asset, so you have both in one place.
  • Waseeyat does not change nominations for you, and does not give investment, tax or insurance advice. Ask each bank, company or fund how to add or change a nominee.
  • Waseeyat's guided will for Muslims is not open yet (see the note "Which law governs your will"). Until it opens, a fixed-fee review by an empanelled advocate is offered instead.
  • For advice on your own situation, ask for the fixed-fee advocate review once Waseeyat opens.

Sources

  • The Companies Act, 2013, section 72. India Code section record (accessioned 10 July 2026), read 21 October 2026: https://indiacode.gov.in/server/api/core/items/576e0b3a-3c98-43bf-b282-8e3e0e0a8d09
  • Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018, regulation 60A. SEBI consolidated text as amended up to 22 November 2025, read 21 October 2026: https://www.sebi.gov.in/sebi_data/attachdocs/aug-2026/1786957172778.pdf
  • Securities and Exchange Board of India (Mutual Funds) Regulations, 2026, regulations 1(2) and 27. SEBI consolidated text as amended up to 7 July 2026, read 21 October 2026: https://www.sebi.gov.in/sebi_data/attachdocs/jul-2026/1783933012694.pdf
  • SEBI circular SEBI/HO/OIAE/OIAE_IAD-3/P/CIR/2026/12676, "Ease of doing investments - Modified Norms for Nomination in Demat Accounts and Mutual Fund Folios", 29 May 2026, paragraphs 4 to 8, 11, 13 and 15, read 21 October 2026: https://www.sebi.gov.in/sebi_data/attachdocs/jun-2026/1780397706130.pdf
  • SEBI circular HO/38/13/11(14)2026-MIRSD-POD/I/17111/2026, "Ease of Doing Investment and Ease of Doing Business - Simplification and standardisation of the framework for transmission of securities", 23 July 2026, Annexure paragraphs 4.1.1 and 7, read 21 October 2026: https://www.sebi.gov.in/sebi_data/attachdocs/jul-2026/1784869499027.pdf
  • The Banking Regulation Act, 1949 (Act 10 of 1949), sections 45ZA to 45ZG and 56. India Code consolidated text as on 20 December 2025, read 21 October 2026: https://indiacode.gov.in/server/api/core/bitstreams/264432b5-2ee6-498b-b41f-4c961bd9738b/content
  • The Banking Laws (Amendment) Act, 2025 (Act 16 of 2025), sections 10 to 13. Gazette of India Extraordinary, Part II, Section 1, No. 16, 15 April 2025, read 21 October 2026: https://egazette.gov.in/WriteReadData/2025/262453.pdf. Sections 10 to 13 in force from 1 November 2025 under S.O. 4789(E) of 22 October 2025: https://egazette.gov.in/WriteReadData/2025/267076.pdf
  • The Banking Companies (Nomination) Rules, 2025 (G.S.R. 790(E), 27 October 2025, in force from 1 November 2025), rules 2 to 4 and the Nomination Form. Gazette of India Extraordinary, read 21 October 2026: https://egazette.gov.in/WriteReadData/2025/267177.pdf
  • Reserve Bank of India (Commercial Banks – Responsible Business Conduct) Directions, 2025 (DOR.MCS.REC.No.89/01-01-032/2025-26, 28 November 2025), Chapter VII, Part D (Nomination Facility) and Part E (Settlement of Claims in respect of Deceased Customers of Banks), paragraphs 264 to 322, version updated as on 1 April 2026, read 21 October 2026: https://www.rbi.org.in/Scripts/NotificationPreVersion.aspx?id=13140&Histid=160
  • Urban Co-operative Banks – Responsible Business Conduct Directions, 2025 (RBI/DOR/2025-26/292, DOR.MCS.REC.No.211/01-01-037/2025-26, 28 November 2025), paragraphs 249 and 250, version updated as on 1 April 2026, read 21 October 2026: https://www.rbi.org.in/Scripts/NotificationPreVersion.aspx?id=13013&Histid=180
  • The Insurance Act, 1938 (Act 4 of 1938), section 39, as substituted by the Insurance Laws (Amendment) Act, 2015 (Act 5 of 2015), section 45, with effect from 26 December 2014. India Code consolidated text as on 15 April 2026, read 21 October 2026: https://indiacode.gov.in/server/api/core/bitstreams/1758ce0f-32f9-40ea-b0bb-70cbfca63764/content
  • The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 (Act 40 of 2025), sections 2(b) and 15. Gazette copy on India Code, read 21 October 2026: https://indiacode.gov.in/server/api/core/bitstreams/56a674a2-0ff3-4e89-ba08-f663636f3643/content. In force from 5 February 2026, except section 25, under S.O. 490(E) of 3 February 2026: https://egazette.gov.in/WriteReadData/2026/269804.pdf
  • High Court of Kerala (Division Bench), W.A. No. 675 of 2025, judgment of 14 August 2025, 2025:KER:61164, paragraphs 8 to 13, read 21 October 2026 and on Indian Kanoon on 3 November 2026: https://indiankanoon.org/doc/16315339/
  • The Employees' Provident Funds Scheme, 2026 (G.S.R. 525(E), notification dated 29 June 2026), paragraphs 1, 2(2), 44 and 50. Gazette of India Extraordinary, read 21 October 2026: https://egazette.gov.in/WriteReadData/2026/273957.pdf
  • The Code on Social Security, 2020 (Act 36 of 2020), section 2(33). India Code consolidated text as on 21 November 2025, read 21 October 2026: https://indiacode.gov.in/server/api/core/bitstreams/0d5654a4-6119-4ef2-98d5-2a2fecd979dc/content
  • The Provident Funds Act, 1925, section 5. India Code section record (accessioned 10 July 2026), read 21 October 2026: https://indiacode.gov.in/server/api/core/items/0f5b83d2-1430-4127-ba9a-3500dace28d9
  • The Government Savings Promotion Act, 1873 (Act 5 of 1873), sections 4 and 16, as amended by the Finance Act, 2018 with effect from 1 April 2018. India Code section records (accessioned 10 July 2026), read 21 October 2026: https://indiacode.gov.in/server/api/core/items/2083391c-cd7e-4c4c-b45e-2892fd9dafdf and https://indiacode.gov.in/server/api/core/items/3417e3ae-2d19-4263-ba52-fee93ce1198d
  • The Indian Succession Act, 1925 (Act 39 of 1925), section 29. India Code consolidated text as on 19 June 2026 (central Act page), read 21 October 2026: https://indiacode.gov.in/act/3eeb6aec-1e1f-42d4-9673-c04d21829663
  • Shakti Yezdani & Anr. v. Jayanand Jayant Salgaonkar & Ors., Supreme Court of India, judgment of 14 December 2023, 2023 INSC 1076, read 21 October 2026: https://api.sci.gov.in/supremecourt/2017/3101/3101_2017_7_1501_49073_Judgement_14-Dec-2023.pdf
  • Ram Chander Talwar & Anr. v. Devender Kumar Talwar & Ors., Supreme Court of India, order of 6 October 2010, reported as 2010 (10) SCC 671 (no neutral citation in the copy read), read 21 October 2026: https://indiankanoon.org/doc/3974595/
  • Smt. Sarabati Devi & Anr. v. Smt. Usha Devi, Supreme Court of India, judgment of 6 December 1983, reported as 1984 AIR 346 and 1984 SCC (1) 424 (no neutral citation in the copy read), read 21 October 2026: https://indiankanoon.org/doc/1308094/
  • Smt. Bolla Malathi v. B. Suguna and Ors., Supreme Court of India, judgment of 5 December 2025, 2025 INSC 1391 (marked non-reportable), read 21 October 2026 in a court copy, and on Indian Kanoon on 3 November 2026: https://indiankanoon.org/doc/53926774/
  • The Union of India & Anr. v. Paresh Chandra Mondal, Supreme Court of India, order of 7 January 2026 in SLP (C) Diary No. 71438/2025 (no neutral citation printed), read 21 October 2026: https://indiankanoon.org/doc/62912996/
  • Shipra Sengupta v. Mridul Sengupta & Ors., Supreme Court of India, judgment of 20 August 2009, cited as (2009) 10 SCC 680 (no neutral citation in the copy read), read 21 October 2026: https://indiankanoon.org/doc/569805/
  • Shri Vishin N. Khanchandani & Anr. v. Vidya Lachmandas Khanchandani & Anr., Supreme Court of India, judgment of 16 August 2000, reported as (2000) 6 SCC 724 (no neutral citation in the copy read), read 21 October 2026: https://indiankanoon.org/doc/1179329/
  • Indrani Wahi v. Registrar of Co-operative Societies & Ors., Supreme Court of India, judgment of 10 March 2016, cited as (2016) 6 SCC 440 (no neutral citation in the copy read), read 21 October 2026: https://indiankanoon.org/doc/13253533/

General information about Indian law, not legal advice. Waseeyat is not a law firm.

Answers come straight from the text below, with the part it came from.

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