Nominee and Joint Account Features in Savings & Current Accounts

Most people think opening a bank account is a one-time task. Just fill out a form, sign a few documents, and you’re done. But there’s one section most of us either skip or don’t think twice about. The nominee and joint bank account section.

In the rush to open an account, we often miss the small decisions that can make a big difference later, especially during emergencies, unexpected life events, or the death of an account holder.

Whether you're an individual managing your personal savings account or a small business owner operating through a current account, understanding how nominee and joint bank account features work is essential.

In this blog, we’ll walk through the roles, differences, and benefits of a nominee and joint account, and how setting them up correctly can prevent months of legal stress down the line.

What Is a Nominee in a Bank Account?

A nominee is someone you authorize to receive the balance in your bank account in case of your demise. Think of it as naming a trusted person who can step in and access your funds smoothly, without the account being locked in legal formalities.

The nominee isn’t the legal heir. They are simply a custodian who receives the money on your behalf and can later transfer it to your rightful heirs based on the will or succession laws.

This distinction often confuses, especially when no will is present. That’s why adding a nominee is about access, not ownership.

Nominees are most useful in:

• Savings accounts, Recurring Deposits and Fixed Deposits— to ensure family members can access funds easily
• Current accounts — especially important if you're a sole proprietor or freelancer with no joint bank account setup

Why it matters:

Without a nominee, your family or business partner may need to go through a legal process to access even a small amount in your account. A simple update today can prevent that.

For instance, if you open a Digital Savings Account with Ujjivan SFB, you can easily nominate up to four individuals..

Savings and Current Accounts Nominee Features

Appointing a nominee is one of the simplest yet most overlooked steps in personal banking. It takes just a few minutes to set up, but it can save your loved ones weeks—or even months—of legal paperwork later.

And now, thanks to the latest RBI-backed updates, you’re no longer limited to just one nominee.

Here’s a quick look at what a nomination in a bank account means:

• Who can be nominated: Up to 4 individuals—family, friends, or trusted persons
• Rights of nominee(s): Right to receive the funds, not legal ownership
• When to appoint: At account opening or anytime later via form or net banking

If you open a joint current account, setting up nominees is still recommended. In the event of the death of all account holders, the nominee(s) become crucial for access, especially if legal heirs aren’t immediately reachable.

Why this matters:

Without a nominee—or with only one nominee who is unavailable—your loved ones may need to approach the court for a succession certificate. With multiple nominees now allowed, access becomes faster, safer, and more flexible.

What Is a Joint Bank Account?

A joint bank account is an account operated by two or more people, typically with pre-defined access rules like 'Either or Survivor' or 'Jointly.'

Unlike nomination, which kicks in only after the account holder’s death, a joint  bank account allows shared ownership and real-time access to funds during life. This makes it incredibly useful for:

• Couples managing household expenses
• Parents and children helping each other financially
• Business partners who need shared control over payments

The real benefit? In the event of one holder’s death, the account doesn’t freeze. The surviving joint holder can continue using it, based on the mode of operation chosen at setup.

Types of Joint Holding

Opening a joint bank account is easy. But deciding how it operates? That’s where it gets important.

Banks offer several modes of operation for joint bank accounts, each with different rules about who can access the funds and what happens if one holder passes away. Choosing the wrong mode can lead to frozen accounts or limited access, even if both parties trust each other completely.

Here’s a quick guide:

• Either or Survivor: Either person independently; survivor continues
• Jointly: All holders must sign; account freezes upon one’s death
• Former or Survivor: Only first holder can operate; survivor takes over after death
• Latter or Survivor: Second-named holder operates; survivor continues after death

Most commonly used: 'Either or Survivor'. It is ideal for couples or family members

How These Features Differ in Savings vs Current Accounts

While the core concepts remain the same, how you apply nominee and joint account features differs based on the account type—savings account (for individuals/families) and current account (for businesses or self-employed professionals).

• Nominee: Important in both, but vital for sole proprietors in current accounts
• Joint Bank Account: Common among family members savings account and co-founders (current)
• Access Mode: 'Either or Survivor' (savings), custom mandates (current)
• Legal fallback: Survivorship (savings), board mandate or partnership deed (current)
• Risk of inaction: Can freeze operations in the current accounts

If you run a business and don’t add a nominee or co-operator, a sudden event could disrupt everything. Having a joint bank account with clear mandates is key to uninterrupted access.

Ujjivan SFB’s Premium Current Account, for example, is designed for small businesses and offers cheque access, nominee setup, and digital fund management in one place.

RBI’s 2025 Update Brings a Major Change to Bank Account Nominations

As of 2025, the Reserve Bank of India has introduced a key update that gives bank account holders greater flexibility and control over their nominations.

What’s New?

You can now:

• Nominate up to four individuals for a single savings or current account.
• Choose how the nomination works:
  - Simultaneous nomination: All nominees share the proceeds—equally or in custom percentages.
  - Successive nomination: The benefits pass from one nominee to the next in a pre-set order.

Why This Matters

Until now, most account holders could name only one nominee, often causing legal complications or family disputes in the absence of a will. This 2025 update allows for clearer succession planning and ensures your funds are distributed as intended.

This is part of the RBI’s broader effort to make the Indian banking system more customer-centric, inclusive, and future-ready.