Question: Sunita receives her pension in a savings account with registered nominee. She later opens a separate pension account, and bank informs her that the nomination in her savings account will automatically apply to the pension account as well. As per the RBI Master Circular on Customer Service in Banks, 2014, the bank's guidance is correct?
Answer: No, the RBI Circular clarifies that the nomination made under the Arrears of Pension (Nomination) Rules, 1983 does not apply to deposit accounts. A pensioner who wishes to avail the nomination facility for a savings bank account used for pension credits must make a separate
nomination facility for a savings bank account  used for pension credits must make  a separate nomination under the Banking Companies ( Nomination) Rules, 1985. Accordingly, the bank's guidance was not in accordance with the RBI Master Circular.

Supporting evidence:
title: rbi.org.in/72MC010714CS.pdf
quote: Banking Companies (Nomination) Rules, 1985 are distinct from the Arrears of Pension (Nomination) Rules, 1983 and nomination exercised by the pensioner under the latter rules for receipt of arrears of pension will not be valid for the purpose of deposit accounts held by the pensioners with banks for which a separate nomination is necessary in terms of the Banking Companies (Nomination) Rules, 1985 in case a pensioner desires to avail of nomination facility
context: omination 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.

19.6 Separate nomination for savings bank account and pension account

Nomination facility is available for Savings Bank Account opened for credit of pension. Banking Companies (Nomination) Rules, 1985 are distinct from the Arrears of Pension (Nomination) Rules, 1983 and nomination exercised by the pensioner under the latter rules for receipt of arrears of pension will not be valid for the purpose of deposit accounts held by the pensioners with banks for which a separate nomination is necessary in terms of the Banking Companies (Nomination) Rules, 1985 in case a pensioner desires to avail of nomination facility.

19.7.1 Nomination facility in respect of deposits

(i) Nomination facility is intended for individuals including a sole proprietary concern.
(ii) Rules stipulate that nomination shall be made only in favour of individuals. As such, a nominee cannot be an Association, Trust, Society or any other Organisation or any office-bearer thereof in his official capacity. In view thereof any nomination other than in favour of an individual will not be valid.
(iii) There cannot be more than one nominee in respect of a joint deposit account.
(iv) Banks may allow variation/cancellation of a subsisting nomination by all the surviving depositor(s) acting together. This is also applicable to deposits having operating instructions "either or survivor".
- (v) In the case of a joint deposit account the nominee's right arises only after the death of all the depositors. (vi) Witness in Nomination Forms: The Banking Companies (Nomination) Rules, 1985 have been framed in exercise of powers conferred by Section 52 read with Sections 45ZA, 45ZC and 45ZE of the Banking Regulation Act, 1949. In this connection, we clarify that for the various Forms (DA1, DA2 and DA3 for Bank Deposits, Forms SC1, SC2 and SC3 for Articles left in Safe Custody, Forms SL1, SL1A, SL2, SL3 and SL3A for Safety Lockers) prescribed under Banking Companies (Nomination) Rules, 1985 only Thumb-impression(s) shall be attested by two witnesses. Signatures of the account holders need not be attested by witnesses.
- (vii) Nomination in case of Joint Deposit Accou