Section 45ZC of the Banking Regulation Act, 1949: Nomination for Return of Articles Kept in Safe Custody
Section 45ZC governs nomination where an individual leaves articles in safe custody with a banking company. The provision enables the customer to nominate persons who may receive the articles after the customer's death, subject to the prescribed nomination procedure and the statutory priority rules.
Important update from 1 November 2025: The Banking Laws (Amendment) Act, 2025 amended Section 45ZC(1). A person leaving articles in safe custody may now nominate one or more persons, not exceeding four, successively. For safe custody articles, the nominations operate in succession rather than simultaneously.
Meaning and scope of Section 45ZC
In simple terms, Section 45ZC provides a statutory nomination mechanism for articles entrusted to a bank for safe custody. It deals with who may receive those articles from the bank after the death of the person who deposited them for safe custody.
The section must be read with Section 45ZD, which concerns notice of competing claims, and with the statutory nomination rules and directions applicable to banks.
Section 45ZC explained clause by clause
Sub-section (1): Nomination for safe custody articles
Where a person leaves an article in safe custody with a banking company, that person may make a nomination in the prescribed manner. Following the 2025 amendment, the nomination may be made in favour of one or more persons, up to four, successively.
A successive nomination means that the nominees are placed in an order of priority. The first nominee has priority if that nominee survives the person making the nomination. A lower-priority nominee becomes effective only in accordance with the statutory succession sequence.
Sub-section (2): Minor nominee
If a nominee is a minor, the person making the nomination may appoint, in the prescribed manner, another person to receive the article if the customer dies while the nominee is still a minor.
Sub-section (3): Inventory before return of articles
Before returning articles to the nominee or to a person appointed for a minor nominee, the banking company must prepare an inventory in the manner directed by the Reserve Bank of India. The nominee or other authorised recipient must sign the inventory, and the bank must provide a copy.
Sub-section (4): Effect of nomination
A valid nomination entitles the effective nominee to receive the article from the banking company after the death of the person who left it in safe custody, unless the nomination has been varied or cancelled in the prescribed manner.
The statutory proviso is important: delivery of the article to the nominee does not extinguish a separate right or claim that another person may lawfully have against the recipient. The nomination mechanism therefore governs the bank's return of the article, while underlying succession or beneficial claims may still have to be determined under applicable law.
Priority of successive nominees under Section 45ZG
The Banking Laws (Amendment) Act, 2025 also inserted Section 45ZG, which lays down the priority of successive nominations. For safe custody articles, the customer can specify up to four nominees in succession. The next nominee in the sequence becomes relevant only when the nominee having higher priority does not survive as contemplated by the Act.
- Maximum number of successive nominees: four.
- Safe custody articles use successive nomination, not percentage-based simultaneous nomination.
- The nomination must be made in the prescribed manner.
- A nomination may be varied or cancelled according to the applicable rules.
- The bank must prepare an inventory before releasing the articles to the entitled recipient.
Section 45ZC and Section 45ZD
Section 45ZD generally provides that a banking company is not required to act on a notice of claim by a person other than the person or persons in whose name the article is held. However, the bank must take due note of a decree, order, certificate or other authority issued by a court of competent jurisdiction relating to the article.
Practical point: Nomination simplifies the bank's process for returning safe custody articles. It should not automatically be treated as a final determination of all inheritance, ownership or succession rights among competing claimants.
Official legal sources
For the current statutory text and amendment history, users should verify the provision from official Government of India and Reserve Bank of India sources.
Related provisions
The nomination provisions for banking customers are contained in a group of sections dealing with deposits, articles in safe custody and safety lockers. See also Section 45ZA - nomination for payment of depositors' money, Section 45ZB - notice of claims regarding deposits, Section 45ZE - release of contents of safety lockers, and Section 45ZF - notice of claims regarding safety lockers.
Last reviewed: 14 September 2026.