Bank Nominee Rules: It is mandatory for all bank account holders to register a nominee in their account. This ensures clarity about who will receive the money if something happens to the account holder. This helps reduce conflicts between relatives. However, the question arises: who will receive the money if the nominee already registered in the account dies? Previously, banks faced some difficulty deciding who should receive the account holder's money.

This used to require a lengthy legal process. However, a new rule has been implemented by the Government of India. Even if the nominee in a bank account dies, the bank will no longer have to worry about who should receive the money. Let's explain who will receive the money in such a situation.

Who will receive the money if the nominee dies?

It's mandatory to register a nominee's name in a bank account. This allows the nominee to legally become the owner of the balance in the bank account if the account holder dies. However, the problem arises when the nominee's name also dies. Who will receive the money in such a situation? Because the nominee no longer exists.

So, let me tell you, even in such a situation, the money will be given to the nominee, but this nominee will be a different one. Now, many people may be wondering how this is possible. So, let me tell you, the government has changed the rules regarding nominees in banks, which will come into effect from November 1, 2025.

There can be four nominees instead of one.

Under the new rules issued by the government, an account holder can now register up to four names in their bank account or locker. These names can be registered either simultaneously or sequentially. If you have selected names sequentially and the first nominee dies, the next nominee will become active and the money can be transferred to their account.

This means that upon the death of the first nominee, the next nominee will be eligible to claim the proceeds. If something happens to that nominee, the next nominee will then claim. This will eliminate any disputes for the bank, as the rules clearly state which nominee will become active when. This new provision is part of the Banking Laws (Amendment) Act, 2025, which will come into effect from November 1, 2025.