1.The bank can never ask Nominee anything except ID , death certificate in original, and claim. They are not supposed to demand any other thing.
The bank claim settlement can only be stopped by a court order.
The general perception is that once a statute stipulates such nomination should be settled in such a way, it overrides all, unless the court restrains.
This is the reason I have solicited whether bankers issued any circular to the branches stipulating the laid down procedure against such claim settlement in favour of nominee when there are objections from other legal heirs.
May be the nomination rules may have to be amended stating such shares, as nomination can only be in the name of one person alone in banks, whereas post office nominations prescribes percentages and names of such nominees in detail.
My query to Shri SRP K remains unanswered as to whether any bank has issued instructions to stop the claim in favour of nomination if there is objection from others, as I am not aware of any such directive from IBA/RBI/Banks to branches.