Question: Priya submitted a duly completed nomination form for her savings account. The bank immediately updated its internal records but did not provide her with any written acknowledgement. Based on the RBI Master Circular on Customer Service in Banks, 2014, what should have occurred after the bank received the completed nomination form?
Answer: The bank should have provided Priya with written acknowledgement of receiving the duly completed nomination form. The RBI Master circular requires banks to acknowledge the receipt of duly completed nomination, cancellation or variation forms in writing irrespective of whether the customer requests such acknowledgement.

Supporting evidence:
title: rbi.org.in/72MC010714CS.pdf
quote: they are required to acknowledge in writing to the depositor(s) / locker hirers (s) the filing of the relevant duly completed Form of nomination, cancellation and / or variation of the nomination Such acknowledgement should be given to all the customers irrespective of whether the same is demanded by the customers
context: It was observed that some banks do not have the system of acknowledging the receipt of the duly completed form of nomination, cancellation and / or variation of the nomination. Further, in some banks, although there is a system of acknowledgement of nomination as provided in the Savings Bank account opening form, such acknowledgements are actually not given to the customers. In this connection, banks are aware that in terms of Rules 2 (9), 3 (8) and 4 (9) of the Banking Companies Nomination (Rules), 1985, they are required to acknowledge in writing to the depositor(s) / locker hirers (s) the filing of the relevant duly completed Form of nomination, cancellation and / or variation of the nomination.
Banks should therefore strictly comply with the provisions of Banking Regulation Act, 1949 and Banking Companies (Nomination) Rules, 1985 and devise a proper system of acknowledging the receipt of the duly completed form of nomination, cancellation and / or variation of the nomination. Such acknowledgement should be given to all the customers irrespective of whether the same is demanded by the customers.

19.4 Registering the nomination

In terms of Rules 2 (10), 3 (9) and 4 (10) of the Banking Companies (Nomination) Rules, 1985 banks are required to register in its books the nomination, cancellation and / or variation of the nomination. The banks should accordingly take action to register nominations or changes therein, if any, made by their depositor(s) / hirers.

19.5 Incorporation of the legend 'Nomination Registered' in pass book, deposit receipt etc. and indicating the Name of the Nominee in Pass Books / Fixed Deposit Receipts

When a bank account holder has availed himself of nomination facility, the same may be indicated on the passbook so that, in case of death of the account holder, his relatives can know from the pass book that the nomination facility has been availed of by the deceased depositor and take suitable action. Banks may, therefore, introduce the practice of recording on the face of the passbook the position regarding availment of nomination facility with the legend "Nomination Registered". This may be done in the case of term deposit receipts also.
Further, banks are advised that in addition to the legend 'Nomination Registered', they should also indicate the name of the Nominee in the Pass Books / Statement of Accounts / FDRs, in case the customer is agreeable to the same.