When and How to Update Your Nominees (2025 Rules)

You added a nominee to your bank account years ago. Probably when you opened it.

Have you checked who it is recently?

Most people haven’t. And that’s a problem, because life changes. You get married. Have children. Parents pass away. Sometimes marriages end.

Your nominees should change with your life. But they usually don’t.

Here’s when you need to update, plus the new rules that let you add multiple nominees to most accounts.

The New Rules: Multiple Nominees Allowed

Until recently, most financial accounts allowed only one nominee. That’s changed.

Bank Accounts: Now Up to 4 Nominees

The Banking Laws (Amendment) Act, 2024 (passed December 2024) allows up to 4 nominees per deposit account. You can also specify percentages for each nominee.

What this means:

• You can name spouse + children as nominees
• If one nominee dies, others can still claim
• You decide who gets what percentage
• You can choose “successive” nomination (backup order) or “simultaneous” (all at once with percentages)

Effective date: November 1, 2025. Banks are updating their systems to comply. Check with your bank.

Demat Accounts & Mutual Funds: Up to 10 Nominees

SEBI’s October 2024 rules (effective March 1, 2025) allow up to 10 nominees for:

• Demat accounts
• Mutual fund holdings
• Direct stock investments

You can specify the percentage each nominee receives. If you don’t specify, it’s divided equally. SEBI also clarified that nominees act as trustees for legal heirs, not owners.

Insurance: Multiple Nominees Allowed

Life insurance has always allowed multiple nominees. You can name:

• Multiple family members with percentage splits
• Or a single nominee

The key change: update often. Many policies still name parents as nominees even after marriage and children.

PPF: Up to 4 Nominees

The Public Provident Fund allows up to 4 nominees. As of April 2025, Finance Minister Sitharaman announced that fees for updating PPF nominees have been removed (previously ₹50). This also applies to NSC, SCSS, and other post office schemes.

When to Update Your Nominees

Life events should trigger nominee reviews. Here are the key moments:

1. Getting Married

What changes: Your spouse likely becomes your primary beneficiary.

Update these:

• Bank accounts (add spouse, adjust percentages)
• Insurance policies (spouse as nominee)
• Investment accounts (spouse as nominee or joint nominee)
• EPF and PPF nominations

Common mistake: Keeping parents as sole nominees after marriage. If something happens to you, your spouse may have to fight for access.

2. Having Children

What changes: Children become potential beneficiaries.

Update these:

• Life insurance (spouse + children or spouse for children)
• Term insurance (ensure coverage is adequate)
• Investment accounts (consider adding children as alternate nominees)

Note: For minor children, the nominee holds funds in trust until they’re adults. Consider naming your spouse as nominee “for the benefit of” your children.

3. Parent Passes Away

What changes: If a parent was your nominee, that nomination becomes invalid.

Update these:

• Any account where the deceased parent was nominee
• Insurance policies
• EPF, PPF, NPS nominations

Time-sensitive: If you die and your nominee has already died, your family faces a longer legal process. Update immediately.

4. Divorce or Separation

What changes: Your ex-spouse likely shouldn’t remain as nominee.

Update these (URGENTLY):

• All bank accounts
• Insurance policies
• Investment accounts
• Company benefits (group insurance, EPF)

Real risk: Divorced individuals sometimes die without updating nominees. The ex-spouse legally receives the funds, even if it wasn’t intended.

5. Opening New Accounts

What changes: Every new account needs a nominee.

Don’t skip nomination: Banks and brokers often let you skip nomination during account opening. Don’t. Add a nominee immediately.

6. Annual Review

What changes: Life circumstances you might not have noticed.

When: Same time you review your estate planning checklist.

What to check:

• Are nominees still alive?
• Are nominees still appropriate?
• Are percentages still correct?
• Have you opened accounts without nominees?

How to Update Nominees: Step-by-Step

Bank Accounts

Online (if available):

1. Log in to net banking
2. Go to “Service Requests” or “Nomination”
3. Select the account
4. Add/change nominee details
5. E-sign or OTP verification

Branch visit:

1. Download nomination form (usually DA-1 or specific bank form)
2. Fill nominee details with relationship and percentage
3. Visit branch with ID proof
4. Submit form and get acknowledgment

Documents needed:

• Your ID proof (Aadhaar/PAN)
• Nominee’s name, address, date of birth
• Relationship to nominee
• Percentage allocation (if multiple nominees)

Insurance Policies

Online (most insurers):

1. Log in to insurer’s portal
2. Go to “Policy Services” or “Update Details”
3. Select “Change Nominee”
4. Enter new nominee details
5. E-sign or follow verification process

Offline:

1. Download Form A (IRDAI standard endorsement form)
2. Fill nominee details
3. Submit to insurer’s branch or via email
4. Receive endorsement acknowledgment

Important: Keep the endorsement acknowledgment. It’s proof of nominee change.

Demat Account & Mutual Funds

Demat (via broker):

1. Log in to your broker’s portal (Zerodha, Groww, etc.)
2. Go to Profile → Nomination
3. Add up to 10 nominees with percentages
4. Complete e-sign verification

Mutual Funds (direct):

1. Each AMC has a separate process
2. Download nomination form from AMC website
3. Submit with signature attestation

Mutual Funds (via platform):

1. Most platforms (MF Central, Kuvera, etc.) offer online nomination
2. Log in → Profile → Nomination
3. Update for all holdings at once

EPF Nomination

1. Log in to EPFO member portal (unifiedportal-mem.epfindia.gov.in)
2. Go to “Manage” → “E-Nomination”
3. Update family details and nominee percentages
4. Verify with Aadhaar OTP
5. Download and save the acknowledgment

Note: EPF nomination can include family declaration. If unmarried, you can nominate parents. After marriage, spouse and children take precedence.

PPF Nomination

Online (if linked to net banking):

1. Log in to your bank’s net banking
2. Go to PPF account services
3. Select “Nomination” option
4. Add up to 4 nominees with percentages

Offline:

1. Download Form G (nomination) from bank website
2. Fill nominee details
3. Submit at the PPF branch

Fee: Free (fee was removed in recent updates)

NPS Nomination

1. Log in to CRA (NSDL/KARVY) portal
2. Go to “Update Details” → “Nomination”
3. Add nominees with percentages
4. Verify with OTP
5. Authenticate with Aadhaar or physical submission

Common Mistakes When Updating Nominees

1. Forgetting Old Accounts

You opened an FD 10 years ago. You’ve forgotten about it. Your parents are still nominees.

Fix: Create an inventory of all accounts. Use a tool like Anshin to track them.

2. Not Updating After Death of Nominee

If your nominee dies before you, the nomination is void. Your family must go through succession certificate process.

Fix: Update within days of a nominee’s death.

3. Leaving Ex-Spouse as Nominee

This happens more than you’d expect. After divorce, people forget to update nominees on all accounts.

Fix: Create a checklist during divorce proceedings. Update every account.

4. Inconsistent Nominations

Your bank account nominee is your spouse. Your insurance nominee is your parent. Your will says children inherit everything.

Conflict: Nominees receive the assets but must hand them over to legal heirs per the will. Creates confusion and delays.

Fix: Align nominees with your will wherever possible. Read about nominee vs legal heir.

5. No Documentation

You updated your nominee but didn’t save the acknowledgment. Years later, there’s no proof.

Fix: Save all nomination acknowledgments in one place. Digital or physical.

Nominee Rules by Account Type

Account Type	Max Nominees	Percentage Split	How to Update	Effective
Savings Account	4	Yes	Net banking or branch	Nov 2025
Fixed Deposit	4	Yes	Net banking or branch	Nov 2025
Demat Account	10	Yes	Broker portal	Mar 2025
Mutual Funds	10	Yes	AMC or platform	Mar 2025
Life Insurance	Multiple	Yes	Insurer portal or Form A	Now
Term Insurance	Multiple	Yes	Insurer portal or Form A	Now
EPF	Family members	Yes	EPFO portal	Now
PPF	4	Yes	Bank portal or Form G	Now
NPS	3	Yes	CRA portal	Now

What Happens If You Don’t Update

If you die with outdated nominees:

1. Nominee is deceased: Account goes through legal heir process. Your family needs legal heir certificate or succession certificate.

2. Nominee is ex-spouse: Ex-spouse legally receives the money. May have to fight in court to recover.

3. Nominee doesn’t match will: Nominee receives assets but holds them as trustee for legal heirs. Can lead to disputes.

4. No nominee at all: Everything requires legal certificates. Months of delay.

Frequently Asked Questions

Can I name a minor as nominee?

Yes, but with conditions. For minors, you must also name a guardian who will manage the funds until the child turns 18.

What if I want to disinherit someone?

Nomination doesn’t equal inheritance. You can name anyone as nominee, but legal heirs still have rights under succession law. To disinherit, you need a will (and even then, some restrictions apply).

Do I need to update nominees every year?

Only if there’s a change in your life (marriage, children, death in family, divorce). Otherwise, annual review is fine just to confirm everything is current.

What’s the difference between nominee and joint holder?

A joint holder owns the account jointly with you and has immediate access when you die. A nominee is a custodian who receives assets on behalf of legal heirs. Joint property works differently.

Can companies refuse to update nominees?

No. You have the right to change your nominee at any time. If a company refuses or delays unreasonably, escalate to the relevant regulator (RBI, SEBI, or IRDAI).

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Your Nominee Update Checklist

Use this to review your nominees:

• Bank accounts (savings, FD, RD)
• Demat account
• Mutual fund holdings
• Term insurance
• Life insurance (traditional policies)
• Health insurance (nominee for claims)
• EPF
• PPF
• NPS
• Company group insurance

For each, confirm:

• Nominee is still alive
• Nominee is still appropriate
• Percentage allocations are correct
• You have acknowledgment saved