News | RBI Proposes Mandatory Contact Details in Bank Account Nominations to Enhance Inheritance Process

RBI Proposes Mandatory Contact Details in Bank Account Nominations to Enhance Inheritance Process

News

15 May 2025

2 min read

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The Reserve Bank of India (RBI) has proposed a significant update to the bank account nomination process by mandating the inclusion of nominees' email addresses and phone numbers. This initiative aims to streamline the inheritance process, reduce disputes, and facilitate smoother transmission of funds upon the account holder's demise.

Currently, the process of claiming funds from deceased account holders' accounts can be cumbersome and time-consuming, often involving extensive paperwork and legal procedures. The RBI believes that incorporating email addresses and phone numbers will drastically improve communication and expedite the settlement process.

The proposed changes are expected to:

Speed up the claim process: Instant communication with nominees will enable quicker access to funds, reducing delays and potential hardship for beneficiaries.
Minimize disputes: Clear communication channels can help prevent misunderstandings and disputes among family members regarding account access and inheritance.
Enhance transparency: Providing contact details will add another layer of transparency to the nomination process, ensuring all parties are kept informed.Data Insights
Reduce fraud: Improved verification through multiple channels can help prevent fraudulent claims and protect the rightful beneficiaries.Data Insights Market
Modernize banking practices: This move aligns with the broader digitalization of banking services, making processes more efficient and user-friendly.

The RBI has invited public comments on the proposed changes by September 30, 2023. This feedback will be crucial in shaping the final guidelines. Once the feedback period concludes, the RBI is expected to issue formal guidelines for implementation.

This proposal is a significant step towards modernizing banking practices and protecting the interests of both account holders and their nominees. By streamlining the inheritance process and reducing potential disputes, these changes are expected to bring greater efficiency and transparency to the banking sector.

Reference: The Economic Times