Nomination & Transfer Rules for Recurring Deposit Accounts

1. Ensures smooth transfer of funds to legal heirs.
2. Avoids legal disputes and documentation hassles.
3. Helps banks quickly settle claims without requiring succession certificates or court orders.

How to Nominate in an RD Account

1. At the Time of Account Opening: Most banks provide the nomination form (Form DA1) along with the RD application.
2. Post Account Opening: You can add or change a nominee anytime during the tenure by submitting: Form DA1 – to nominate Form DA2 – to cancel Form DA3 – to change nominee
   1. Form DA1 – to nominate
   2. Form DA2 – to cancel
   3. Form DA3 – to change nominee

Required Documents:

1. Completed nomination form (as per bank format)
2. Signature/thumb impression of the account holder
3. Account details

Documents Required for Nominee to Claim RD on Depositor’s Death

Mandatory documents:

1. Death Certificate of the RD account holder (original and copy)
2. Valid identity and address proof of the nominee
3. Duly filled claim form (provided by the bank)
4. Original RD deposit receipt or account passbook (if applicable)
5. Recent photograph of the nominee

If nominee is a minor:

1. Proof of guardianship
2. Guardian’s ID proof

If nominee is not registered:

1. Legal heir/succession certificate
2. Affidavit and indemnity bond (as per bank policy)

Documents Required for RD Transfer (Same Bank, Different Branch)

1. Written request letter mentioning current and target branch
2. Copy of RD passbook or RD account details
3. Original passbook (if issued physically)
4. Identity proof of the account holder (for verification)
5. Any bank-specific transfer form (may vary by institution)

Note: Transfer is only permitted within the same bank. Inter-bank transfer is not allowed; you must close and reopen an RD if moving to a new bank.

 Rules for Nomination in RD

1. Only one nominee is allowed per account (individual or minor).
2. Nominee can be a family member or any person, including minors (with a guardian).
3. Joint account holders must mutually agree on nomination.
4. Nomination can be changed or cancelled anytime by the account holder(s).
5. Nominee does not automatically become the legal heir unless supported by a will or succession document.

What Happens if No Nomination is Made?

In case of the account holder’s death:

1. Legal heirs must submit a succession certificate or a legal heir certificate.
2. Bank may require indemnity bonds or affidavits.
3. The process becomes lengthy and may delay fund release.

Transfer Rules for Recurring Deposit Accounts

Though RDs are usually linked to a specific branch, they can be transferred under certain conditions:

How to Transfer RD to Another Branch or Bank

1. Submit a written request to the current branch.
2. Provide details of the new branch (same bank) or reason for transfer.
3. Some banks may allow online transfer via net banking.
4. Transfer between banks is not allowed; only within branches of the same bank.

Note: Breaking the RD and reinvesting in another bank may be an option if inter-bank transfer is not permitted.

 Joint Accounts & Nomination

1. All joint holders must jointly nominate a person.
2. In case of the death of one holder, the surviving holder(s) and nominee jointly claim the funds.
3. If both joint holders die, the nominee becomes the claimant (subject to legal confirmation).

 Can RD Be Transferred to Another Person?

No, RD accounts are non-transferable between individuals. The ownership cannot be shifted unless it's a legal claim by nominee or heir after the account holder’s death.

 Legal Aspects to Consider

1. Nominee is a trustee, not an owner of the deposit.
2. Legal heirs can contest the nominee’s claim if there is a valid will or succession proof.
3. Banks act on nomination for settlement, but disputes must be resolved legally.

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