In a move aimed at enhancing flexibility and financial security for account holders, the Reserve Bank of India (RBI) has announced that individuals can now add up to four nominees to a single bank account. The decision is expected to simplify inheritance and claim processes for families while giving customers greater control over their financial planning.
Until now, most banks permitted only one nominee per account, often creating complications in the event of the account holder’s death. The new rule allows multiple nominees with clearly defined shares or percentages, ensuring that the distribution of funds among beneficiaries is transparent and dispute-free.
According to the RBI’s updated directive, customers can add, modify, or remove nominees through both online and offline banking channels. The central bank has also mandated that all banks update their internal systems to support multiple nominee functionality within the next few months.
Financial experts have welcomed the decision, noting that it will help joint families, business owners, and senior citizens better manage succession planning. “Allowing four nominees ensures that no legal heir is left out and the funds are smoothly transferred without legal delays,” said Anil Mehta, a financial advisor based in Mumbai.
The RBI emphasized that customers should regularly review and update their nominee details, particularly after major life events such as marriage, divorce, or inheritance changes.
The new framework is expected to come into effect from January 1, 2026, after banks complete necessary technological upgrades.
