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May 27, 2026
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Banks seek RBI guidance as multiple nominations create claim settlement hurdles
Multiple nominations on individual accounts are posing operational challenges to banks in claims settlement, prompting them to seek guidance from the banking regulator.
Under existing rules, up to four persons can be nominated on a bank account or locker. Issues can arise if the nominees do not approach the bank jointly or at the same time to present their claims, said people familiar with the matter.
“We have informally raised similar operational concerns with the Reserve Bank of India (RBI), and a formal representation is also in the works,” said a bank executive, who did not wish to be identified.
Queries emailed to the RBI did not elicit a response till press time. Another bank executive said that a formal guidance from RBI will ensure much needed uniformity since there are numerous such cases.
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