Who has the right to a deceased person's bank deposit — the nominee or the legal heirs?

Question

My father passed away and had nominated my brother in his bank account, but I believe I am also entitled to a share as a legal heir. Who actually gets the money? I have been reading conflicting things online and I would like to understand what Indian law actually says about this, which Act and Section applies, what the realistic timelines and costs are, and what I should be doing right now to protect my position. If the matter can be resolved without litigation I would prefer that route, but I want to know what my rights are before I agree to anything or sign any document.

MyVakeel Legal Desk · Accepted Answer

Who has the right to a deceased person's bank deposit — the nominee or the legal heirs? is governed in India primarily by Banking Regulation Act 1949, Section 45ZA, Indian Succession Act 1925, Section 214 and Hindu Succession Act 1956, Section 8. The short answer is set out below, followed by the practical steps most people in this situation need to take. Read it alongside the specific provisions named, because the exact relief available to you turns on the facts you can prove on paper.

Section 45ZA of the Banking Regulation Act 1949 allows a bank to validly discharge its liability by paying the deposit to the nominee named by the deceased account holder, and this discharges the bank of further responsibility once such payment is made.

Courts have consistently clarified that a nominee is only a trustee who receives the money on behalf of the legal heirs and does not automatically become the absolute owner of the funds unless the deceased also left a valid will in the nominee's favour.

Under Section 214 of the Indian Succession Act 1925 and the general law of succession, the actual entitlement to the deposit money is governed by the applicable personal succession law, such as Section 8 of the Hindu Succession Act 1956 for a Hindu male dying intestate, which lists Class I heirs entitled to share the estate.

This means that even after the bank pays the nominee, the other legal heirs retain a civil law right to claim their share of the inheritance directly from the nominee, since the nomination only settles the bank's payment obligation and not the ownership dispute among heirs.

If heirs disagree on entitlement, the dispute must be resolved through a civil suit for partition or declaration, or by obtaining a succession certificate or letters of administration, rather than by disputing the bank's payment to the nominee itself.

What to do next: 1) Obtain the death certificate, the nomination record and the account statements from the bank; 2) Check whether the deceased left a will; if so, probate or succession will follow its terms; 3) If there is no will, identify the Class I or applicable legal heirs under the relevant succession law; 4) If heirs cannot agree, approach a civil court for partition or file for a succession certificate to settle entitlement.

If the other side has already issued a notice, filed a case or set a deadline, treat the matter as time-sensitive — most remedies under Banking Regulation Act 1949, Section 45ZA carry limitation periods, and a delay you cannot explain weakens an otherwise strong case. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in this practice area.