Few years back I lost my mother and that was the time when I actually understood the importance of having  proper nominations in all accounts and investments be it  savings account, PPF account or Fixed Deposits or bank lockers or even the Mutual Funds or securities.

Nomination is a facility of naming someone to receive the balance in accounts in case of death of account holder.

I must tell you all that no nomination is the biggest mistake, as unfortunate times are never expected. We can not plan for such events but we can definitely make our hard earned money/assets easily accessible to our loved ones when we are no more.

Nominee can be any one from your closed ones to your friends. However to avoid any future disputes its always better to nominate your legal heir as the nomiee ie spouse & children. Nominee can also be changed from time to time. Its important to keep a track of nominations and update it if required.

Nomination in Bank Accounts, Lockers & Fixed Deposits

As per Banking Rules a Nominee will receive the balance in bank accounts, lockers & FDs in case of death of the Account holder.

In cases of no nomination the legal heirs upon death of account holder have to prove their legal heirship by providing documents like succession certificate, legal heir certificate & other documents as may be required by bank. Getting these certificates itself is a time taking and money consuming process.

In simple words, proper Nomination in all deposit accounts & Lockers simplifies the process of settling claims on death of the account holder to the nominee.

Now when we are facilitated with net banking, we can check & update the nominations in our accounts online. You can check and update the nominations in all your Bank accounts by logging on to your net banking. However for bank lockers nomination can be done by visiting your bank branch.

How to Check Nomination in SBI Bank?

How to Check Nomination in ICICI Bank?


Nomination in PPF, NPS & Lfie Insurance

PPF, NPS & life Insurance Policies have option to appoint more then one person as nominees for which share of each nominee must be defined to make it a total of 100%.

PPF & Life Insurance- In the event of death of the subscriber, amount in PPF account will be given to nominee/legal heir. In case life insurance too the policy amount will be given to the nominee in case of death of the subscriber.

NPS- In the event of unfortunate death of the subscriber, 100 % amount of NPS will be given to nominee/legal heir and there will be no annuity required to be purchased.

In case of no nomination the legal heirs have to prove their legal heirship by providing documents like succession certificate, legal heir certificate & other documents as may be required.

However in case of nomination to be done/updated in PPF, NPS & Insurance Policies, you can download the nomination form from the website of your bank, NPS portal or insurance provider. Fill the nomination form and contact your bank in case of PPF, POP for NPS and Insurance provider for insurance to submit the nomination form.

If PPF account is online, nomination can be checked by logging on to your net banking. In case of NPS too you may check the nomination online through your PRAN.

All about Public Provident Fund - PPF

All about additional deduction of ₹ 50000 for NPS-National Pension Scheme


Nomination in Mutual Funds & Securities

Presently nomination is mandatory in case of new folios of Mutual funds where mode of holding is single. Fund houses do not allow new holdings to individuals without proper nomination.

For the holdings in electronic mode, the nominee of Demat account will automatically be appointed as nominee in mutual funds. You can check your folio to confirm the nominee.

For any previous holdings where nomination is not done, the nomination form can be downloaded from the website of the mutual fund house. You need to contact the fund house and follow the process as directed by them for updating the nomination.

Equity Linked Savings Schemes - ELSS a great option for tax savings

Systematic investment Plans - SIP a regular savings plan

Some Other useful links:
How to Check Nomination in SBI Bank?

How to Check Nomination in ICICI Bank?

Dont miss to link PAN with AADHAR. How to link PAN & AADHAR Read in detail...

Standard deduction from salary of ₹ 50000/-...read in detail...

Fair Market Value of Property purchased before 2001-How to Calculate??

1% TDS by buyers on property purchase

Avoid TDS by submitting Form 15G and Form 15H

Check your Tax credit-26AS

Which Tax Regime to opt for? New vs Old Tax Regime applicable from the Year 2020-21!!

Investment in NPS - Additional deduction of ₹ 50000 u/s 80CCD

Deduction for mediclaim/health insurance premium-Section 80D

Deduction for maintenace of a differently abled dependent-Section 80DD

Deduction for Interest on Education Loan u/s 80E

Deduction U/s 80U to the Differently Abled

Deduction for Savings Bank Interest ₹ 10000 u/s 80TTA

Deduction for Interest for Senior Citizens ₹ 50000 u/s 80TTB

How to Donate to PMNRF(Prime Minister Relief Fund)-Deduction u/s 80G

How to Donate to PMCARES-Deductible u/s 80G

Deduction for rent paid u/s 80GG

I would love to here for a feed back or for a query. So do write to me at arpita@tdsmaster.com