FD Nomination Rules 2026: How to Add Up to 4 Nominees — and What Happens Without One

By Nitish Bharadwaj · Published Jul 23, 2026 · 6 min

Since November 1, 2025, bank depositors can nominate up to four people on a fixed deposit — either as a simultaneous percentage split or a successive order — replacing the old single-nominee rule. A nominee isn't the legal owner; they receive it as a trustee for whoever the law recognises as the actual heir. With a nominee on file, banks release the FD within about 15 working days, no succession certificate needed. Without one, legal heirs face indemnity bonds, no-objection letters, and a certificate that can take months to obtain.

Until November 2025, every bank fixed deposit in India carried the same limitation: exactly one nominee, full stop. If that one person predeceased the depositor or simply couldn't be traced, the FD fell back into the legal succession process regardless of how carefully the account was otherwise planned. The Banking Laws (Amendment) Act, 2025 removed that ceiling — depositors can now name up to four nominees on a single FD. Here's what changed, how to actually add or update nominees on an existing deposit, and what your family faces if the nomination field was simply left blank.

What Changed — From One Nominee to Four

Key provisions of the Banking Laws (Amendment) Act, 2025 relating to nomination came into effect on November 1, 2025, replacing the single-nominee rule that had applied to bank deposits, including fixed deposits, since 1985. Depositors can now choose between two structures: a simultaneous nomination, where up to four people are named together with a specified percentage share each (adding up to 100%), or a successive nomination, where up to four people are named in order and the next nominee becomes entitled only after the one before them has died. Both options apply uniformly across every bank in India — public, private, and small finance banks alike.

This is a genuinely different reform from the one that's been making headlines in the mutual fund and demat world — SEBI's nomination rule for demat accounts and mutual fund folios allows up to three nominees and applies to securities, not bank deposits. The Banking Laws (Amendment) Act's four-nominee rule is specific to bank accounts, fixed deposits, and locker holdings — a separate law covering a separate category of assets.

Nominee vs Legal Heir — They Aren't the Same Person

A nominee is not automatically the legal owner of the money. Under Indian law, a nominee receives the FD proceeds as a trustee, holding them on behalf of whoever is actually entitled to inherit under the depositor's will or, in the absence of a will, under the applicable succession law. In practice, for the vast majority of families, the nominee and the rightful heir are the same person — a spouse or child named as nominee is usually also the sole legal heir — so this distinction rarely creates a real dispute. It matters mainly when a depositor names a nominee who isn't a natural heir (a friend, a distant relative, or a caregiver), or when other family members contest the will after the fact.

How to Add or Change Nominees on an FD

1. For a new FD: nomination is offered at account opening — fill in the nominee's name, relationship, date of birth (if a minor), and address on the account opening form, and choose simultaneous or successive if naming more than one
2. For an existing FD without a nominee: submit Form DA1 (fresh nomination) at your home branch, or check whether your bank's net banking or mobile app now supports adding a nominee digitally — most major banks rolled this out through 2026
3. To change an existing nominee: submit Form DA2 (varying a nomination) with the updated names, relationships, and percentage shares
4. To cancel a nomination entirely: submit Form DA3, though leaving an FD without any nominee is not recommended under any circumstance
5. If naming a minor as one of the nominees, also provide the details of an appointee — an adult who will receive and hold the funds on the minor's behalf until they turn 18

What Happens If There's No Nominee

Where a nominee is on file, the bank is required to release the FD balance to them on production of basic documents — a claim form, the death certificate, and valid ID proof — and cannot insist on a succession certificate, probate, or an indemnity bond, regardless of the deposit amount. Where there's no nominee and no surviving joint holder, the legal heirs instead have to establish their claim through a succession certificate or legal heir certificate from a court or local revenue authority, along with an indemnity bond and a no-objection letter from any heirs not making the claim. RBI guidance lets each bank fix a simplified, lower-documentation process for claims below a threshold it sets internally — commonly used for smaller-value accounts — but above that threshold, the full legal heir process applies.

Joint FDs — the Nominee Only Comes Into Play at the End

A common misconception is that a nominee overrides a joint holder. It doesn't. On a joint FD held on an "Either or Survivor" or "Former or Survivor" basis, the surviving joint holder is entitled to the full proceeds on the death of the other holder — the nominee has no claim at that point. The nomination only becomes operative after the death of the last surviving joint holder, when there's no one left on the account to inherit it by survivorship. For a joint FD held by a couple, this means the nominee is effectively a backup for what happens after both partners have died, not a competing claim while either is alive.

If you're holding fixed deposits across multiple banks, treat this as a prompt to check each one — a nomination filed on one FD years ago doesn't carry over to a new FD opened at the same bank, let alone a different one. It's also worth pairing with basic protection for the deposit itself: our guide to DICGC deposit insurance covers exactly how much of your FD is protected if the bank itself runs into trouble, separate from who inherits it. And if you're comparing where to park a large FD in the first place, our FD laddering strategy guide is a useful next read. For the actual step-by-step claim process once a death has already occurred — including the exact documents needed with and without a nominee, and RBI's 2025 settlement timeline — see our dedicated FD death claim guide. And if the FD receipt itself has gone missing rather than the depositor, the indemnity-bond process works differently — see our guide to getting a duplicate FDR issued.