The Banking Companies (Nomination) Rules, 1985 framed under Banking Regulation Act, 1949 enable banks to pay the amount standing to the credit of the deceased depositor to his nominee. Authorised dealers may allow remittance of funds lying in the NRE/FCNR accounts of the deceased accountholders to their non-resident nominees subject to the following conditions:
(i)Application in form LEG is submitted by the nominee(s);

(ii)A valid nomination has been registered on the banks records in favour of the nominee/s in conformity with the provisions of the Banking Companies (Nomination) Rules, 1985;

(iii)The nominee continues to be non-resident at the time of the claim/remittance sought for from India and that the deceased depositor was non-resident at the time of his/her death;

(iv)All the legal heirs are non-residents. A signed declaration to the effect duly witnessed may be submitted by the nominee to the authorised dealer.

Application in form LEG together with the documents/particulars mentioned therein received from the nominees should be scrutinised and after satisfying about the legality of the claim as per the internal guidelines, authorised dealers may settle the claim and allow transfer of funds to the nominee to the extent of balances held in the deceased depositors NRE/FCNR accounts. A copy of the form LEG and the relevant documents should be kept on records for verification by the inspecting officials of Reserve Bank. All other cases which do not fulfil the aforesaid terms and conditions or where the amount in NRE/FCNR account is claimed by a person other than the nominee should be referred to the concerned Regional Office of Reserve Bank for prior approval by authorised dealer in form LEG supported by documents indicated therein together with the legal representation issued by an Indian Court