CHANDIGARH,16.09.26-If the account has a valid nominee, the bank pays the amount to that nominee once the required formalities are completed. But a nominee is not automatically the owner of the funds-they typically hold it in trust, for onward distribution to the rightful legal heirs.
Where no nomination exists, the legal heirs must establish their claim through documents prescribed under RBI guidelines — such as a Legal Heir Certificate, indemnity bonds, declarations, or, in some cases, a Succession Certificate.
Knowing these rules in advance can save families considerable time and stress while settling a deceased customer's bank accounts and deposits.

ASHOK KAKKAR, M.Com. LLB. LLM. CAIIB
Advocate | Insolvency Professional | Former Banker
Based in: Chandigarh, India
Website: LegalWisdomHub.in
Email:akkakkar.58@gmail.com
Mobile:9996909992
Areas of Interest
Banking • Law • Insolvency • IBC • Financial Awareness • Knowledge Sharing • Life & Motivation
Guiding Thought
Keep Learning • Share Knowledge • Stay Curious • Live with Purpose