Nominee and Joint Account Features in Savings & Current Accounts
Disclaimer: This blog is written for generic information only. Ujjivan SFB does not take any responsibility for the accuracy of the information mentioned herein.
July 29, 2025
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:
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:
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:
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:
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).
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:
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.
Final Thoughts
Setting up a joint bank account or adding a nominee is smart. These features protect your money and the people you care about. They prevent disruption, save legal time, and provide dignity in moments of crisis.
Disclaimer:
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