Bank Locker and Account Nomination Rules Simplified: Now Add Up to Four Nominees:

Bank Locker: The limitations pertaining to bank lockers by the government has become more lenient compared to the past. On April 16, 2025, a rule will come into effect that simplifies the procedure of assigning a nominee to a bank account and locker. You can now assign up to four nominees in a single bank account.

There are 2 ways to assign a nominee

Simultaneous - In this case, each of the four nominees receives the money according to the predetermined ratio for each share. Let's say you assign A gets 40%, B 30%, C 20%, and D 10%. The distribution of funds after your death will be done as stated below.

Successive - In this case, only the initial nominee is entitled to receive the funds. Should he decline or pass away, the second will be the next in line, and so on, third and fourth in sequence.

With regard to the bank locker or the items in possession of the bank, only one nomination is accepted. In this situation, however, four people may sequentially be made nominees. Nomination is however not made and there is a claimant after death, he will have to bring documents such as will, succession certificate. This task can be tedious and time consuming.

What is the process to retrieve unclaimed money?

For any amount deposited in the bank by an individual that has not been accessed for a period of 10 years will now be transferred to the DEA fund of the RBI. But do not panic, this money can be withdrawn from the bank anytime.

In case bonds are funded through a company and are not claimed after seven years, the principal along with the interest will be channeled to the IEPF fund. Likewise any non-claimed dividend for seven years will also migrate to IEPF. Therefore, it is prudent to encourage nomination for bank accounts and lockers while one is alive so that there loved ones don't face undue hassles post death.