The Reserve Bank of India (RBI) has issued a notification requiring all banks and Non-Banking Financial Companies (NBFCs) to ensure that both new and existing savings accounts and safety lockers include a nominee. This move is aimed at reducing the difficulty and complications for family members of account holders in case of their death, ensuring a smoother process for settling claims.

The notification reveals that many savings accounts and lockers do not currently have a nominee, which can lead to issues in accessing and claiming funds or assets when the account holder passes away. Having a nominee in place helps streamline the settlement process, avoiding delays and disputes among family members. This is especially crucial in cases where a large sum of money remains unclaimed because there was no nominee designated.

To address this, the RBI has mandated that:

• Existing and new accounts must have a nominee listed.
• Progress reports regarding the completion of this requirement must be submitted by banks on a quarterly basis starting from March 31, 2025.
• Banks are encouraged to train their staff to handle nominee nominations and settle claims effectively.
• Banks must also use various media channels to raise awareness among customers about the importance of adding a nominee.

This move is part of the RBI's broader initiative to ensure ease of access for legal heirs and reduce the amount of unclaimed money in banks and financial institutions.