Question: Rohan opened a single fixed deposit account but choose not to submit a nomination. After the bank explained the benefits of nomination, he still declined to nominate and also refused to provide a written declaration stating that he did not wish to nominate. According to the RBI Master Circular on Customer Service in Banks, 2014, should the bank refuse to open the account?
Answer: No, the RBI Master Circular states that the bank should explain the benefits of the nomination facility. If the customer still refuses to nominate and also declines to give a written declaration, the bank should record this fact in the account opening form. The bank should not refuse to open the account solely because the customer did not make  a nomination.

Supporting evidence:
title: rbi.org.in/72MC010714CS.pdf
quote: In case the person opening an account declines to fill in nomination, the bank should explain the advantages of nomination facility In case the person opening the account declines to give such a letter, the bank should record the fact on the account opening form and proceed with opening of the account if otherwise found eligible Under no circumstances, a bank should refuse to open an account solely on the ground that the person opening the account refused to nominate
context: ropriate that the Reserve Bank of India issues guidelines to the effect that no Savings Account or Fixed Deposit in single name be accepted unless name of the nominee is given by the depositors. It will go a long way to serve the purpose of the innocent widows and children, who are dragged on long drawn proceedings in the Court for claiming the amount, which lawfully belongs to them".
Keeping in view the above, banks should generally insist that the person opening a deposit account makes a nomination. In case the person opening an account declines to fill in nomination, the bank should explain the advantages of nomination facility. If the person opening the account still does not want to nominate, the bank should ask him to give a specific letter to the effect that he does not want to make a nomination. In case the person opening the account declines to give such a letter, the bank should record the fact on the account opening form and proceed with opening of the account if otherwise found eligible. Under no circumstances, a bank should refuse to open an account solely on the ground that the person opening the account refused to nominate.

19.3 Acknowledgement of Nomination

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, can