Chapter IIIB — Non-Banking Institutions and Financial Institutions
Section 45QB: Nomination by depositors
Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026
Section 45QB creates the nomination framework for deposits with NBFCs, allowing the statutory nominee to receive the amount on the depositor's death in the manner prescribed, subject to rights of other persons being worked out according to law.
Operative provisionOfficial sources mappedProvision-specific decode
Finin2min - Section 45QB in 2 minutes
Statutory structure and clause / subsection decode
This map separates the operative limbs of this provision so thresholds, powers, conditions and exceptions are not collapsed into a single summary.
Rule 1
The provision simplifies discharge by the NBFC
Rule 2
nomination does not necessarily decide beneficial succession among heirs in every dispute.
Connected rule
Read the section with the prescribed nomination rules/forms and the current Public Deposits Directions/customer-service process.
Worked practical example
Facts. Payment to a valid nominee can discharge the NBFC according to the statutory scheme, while a separate succession dispute among heirs may continue outside the NBFC's payment process.
Compliance points and common mistakes
- Do not decide the issue from the heading alone. Map the facts to the operative words of Section 45QB and to each relevant subsection, clause, proviso or explanation shown above.
- Keep the statutory question separate from the operational overlay. Read the section with the prescribed nomination rules/forms and the current Public Deposits Directions/customer-service process.
- Do not convert an exception, exemption or discretionary RBI/Government power into an automatic entitlement. Record the authority, conditions and effective date.
- Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.
Connected provisions and instruments
Questions and answers
What is the purpose of Section 45QB?
Nomination by depositors: Section 45QB creates the nomination framework for deposits with NBFCs, allowing the statutory nominee to receive the amount on the depositor's death in the manner prescribed, subject to rights of other persons being worked out according to law.
Which statutory limb should be checked first?
Rule 1 - The provision simplifies discharge by the NBFC
What is the next legal boundary?
Rule 2 - nomination does not necessarily decide beneficial succession among heirs in every dispute.
What record should support the conclusion?
Section 45QB file evidence: Maintain the nomination form, depositor identity, account/deposit reference, cancellation/variation history and death/claim documents.
Primary sources
- Department of Financial Services - consolidated RBI Act (states amendments through Finance Act, 2022)
- India Code - Reserve Bank of India Act, 1934
Source control for Section 45QB: use the official consolidated RBI Act for the statutory text and footnotes, then separately reconcile any post-Finance Act 2022 amendment, commencement notification or RBI instrument relevant to the event date.