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Abhishek Jain (SSE)     23 July 2015

Nominee in bank accout

My Nana (Maternal Grandfather) passed away and is survived by his 4 daughters. He has no son. All his wealth is in bank accounts. In the bank accounts he has named the eldest daughter as the nominee (he left no will). 


Can the other three daughters claim that the amount in the bank be divided equally among all the four daughters? If the elder daughter (the nominee in the bank account) refuses to share the money, can any legal action be taken?



 5 Replies

Samal Kumar (ADVOCATE HIGH COURT OF KERALA)     23 July 2015

If a person has been  nominated to receive proceeds of the bank account (after his death ) by the account holder during his life time , bank is legally bound to transfer such proceeds to the nominated person only. Others cannot claim a share as a matter of right.

1 Like

Kumar Doab (FIN)     23 July 2015


The Bank can discharge its responsibility by making the payment to nominated person.

The Nominee in bank a/c is only the hand to receive and has to distribute to the legal heir(s)/successors. Thus the eldest sister has to give ¼ th share to other 3 sisters………………………or the other sisters can sue the eldest sister.

The bank can not make the payment to nominee if there is a court order/stay…………..

If the dispute is lodged with the bank the bank may block the payment till there is an order by court……………………….and may demand to produce ‘Succession Certificate’.


RBI guidelines; ‘Master Circular on Customer Services’ is clear on it.

You may go thru Sec19,20.

1 Like

Sachin Garg (Advocate)     23 July 2015

First of all you should talk to the elder daughter( nominee in bank account), if she refuse to give any thing as a share to other daughters, you can not do any thing as the amount of bank account is not a properity in which every body can take their share as a lawful right.

1 Like

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     24 July 2015

The Bank will pay the amount to the nominee. But other heirs can certainly stake claim. Cash, unlike immovable property, can easily vanish. Hence the claimants have to act fast. Other heirs can claim the amount from the eldest sister. But if she is unwilling to settle, the claimants must bring court order to freeze the accounts until the issues are settled. By the way, is your mother the eldest or is she one of the younger ones?

N.K.Assumi (Advocate)     24 July 2015

Yes, be it LIC, pension etc; nominee is only to receive from the custodian of the property like the  bank, but has no right to make it as his own.Question as to who will be the beneficial owner will be decided as per the personal laws of the party followed by Succession certificate as the sole owner.

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