Why Nomination Is Important and How You Can Do It

When you open a bank account, invest in financial instruments, or take an insurance policy, you are often asked to add a nominee. Many people skip this step or leave it for later, not realising how crucial it is. Nomination isn’t just another formality—it plays a significant role in protecting your loved ones and ensuring your money reaches them without complications.

In this blog, we’ll explore why nomination is important and how you can easily complete the process with banks like Bank of Maharashtra.

What does nomination mean in banking?

Nomination is a facility that allows a bank account holder or investor to appoint someone—usually a family member—to receive the proceeds from the account or investment in the event of the account holder’s death. The nominee doesn’t become the legal heir but acts as a custodian until the legal heir can claim the funds.

Think of it as leaving behind a simple instruction to the bank: "If I’m not around, give this money to this person."

Why nomination is important for your financial safety

1. Smooth access to funds for family

Without a nominee, your family members will need to go through a long process involving legal documentation, succession certificates, or court orders just to claim your money.

2. No unnecessary delays

A nomination allows banks to release the funds to the nominee quickly, without needing complex paperwork. This is crucial during emergencies when money is urgently needed for expenses or obligations.

3. Avoids family disputes

When there's no clear nominee, there’s a higher risk of disputes among family members. A proper nomination eliminates confusion about who should receive the funds.

4. Applicable across financial products

Nomination isn’t just limited to savings accounts. You can and should nominate someone for:

• Fixed deposits
  
• Recurring deposits
  
• Mutual funds
  
• Insurance policies
  
• PPF and EPF accounts
  
• Locker facilities
  

Wherever your money or assets are stored, there should be a nominee listed.

How to add a nominee in your bank account

Online nomination process

If you’re banking with Bank of Maharashtra, here’s how you can nominate someone online:

• Log in to your Internet Banking portal.
  
• Navigate to the ‘Services’ or ‘Requests’ section.
  
• Select ‘Add/Modify Nominee’.
  
• Fill in the details: name, relationship, date of birth, and contact.
  
• Submit the request and save the acknowledgement.
  

Offline process via branch

• Visit your nearest Bank of Maharashtra branch.
  
• Ask for a DA1 nomination form.
  
• Fill in the account details and nominee information.
  
• Submit it with a valid ID proof.
  
• You’ll get a confirmation once the nomination is updated.
  

For joint accounts

Joint accounts can also have nominees, but all account holders must agree and sign the form. The nominee will only receive the funds after the last surviving account holder’s demise.

Can you change or update a nominee?

Yes, you can change or remove a nominee anytime. Life changes—like marriage, children, or personal preferences—may prompt you to update your nominee. Simply follow the same process online or offline to submit new nominee details.

Common mistakes to avoid while adding a nominee

• Leaving the nomination section blank.
  
• Forgetting to update nominee information after major life events.
  
• Naming a minor without appointing a guardian.
  
• Assuming that the nominee becomes the legal owner (they’re just a caretaker unless specified by law).
  

Avoiding these mistakes can prevent significant issues later.

FAQs about nomination in banking

1. Who can be a nominee?

A nominee can be any individual—family member, friend, or legal heir. However, most people choose a spouse, child, or parent.

2. Can I have more than one nominee?

Most banks allow only one nominee per account. However, in the case of mutual funds or insurance, multiple nominees can be added with percentage allocations.

3. Is a nominee the same as a legal heir?

No. A nominee is simply entrusted with the funds until the rightful legal heirs claim it. Legal heirs are determined by succession laws.

4. What happens if no nominee is added?

In such cases, the bank will not release the funds until your legal heirs provide proof through a succession certificate or a will, which can take months.

5. Can I change the nominee later?

Yes, you can change, update, or delete a nominee at any time. It’s a simple process with most banks, including Bank of Maharashtra.

6. Can I nominate a minor?

Yes, you can nominate a minor. However, you must also appoint a guardian who will receive the funds on behalf of the minor.

Why Bank of Maharashtra is a trusted choice

When it comes to managing your finances, the Bank of Maharashtra provides easy options to add or update your nominee—both online and offline. The process is transparent, guided, and customer-friendly. If you’re planning to open a new account, start a fixed deposit, or invest in recurring deposits, make sure you nominate someone you trust.

By ensuring you have a nomination in place, you are not only securing your funds but also showing care for your family’s financial well-being.

Author: Bank of Maharashtra
Date of Publish: 16 Dec, 2025