The Central Government has announced that new bank nomination rules under the Banking Laws (Amendment) Act, 2025 will take effect from November 1, 2025. These rules are designed to offer greater flexibility, transparency, and depositor protection, according to a statement by the Finance Ministry.
For the first time, bank customers will be able to nominate up to four individuals for their savings accounts, fixed deposits, lockers, and articles kept in safe custody.
Key Objectives of the New Rules
The government said the amendments aim to:
- Simplify and standardize the nomination process across all banks,
- Speed up claim settlements, and
- Strengthen depositor protection while ensuring ease and transparency.
These reforms are part of a broader effort to enhance governance and customer convenience within the Indian banking system.
Background: The Banking Laws (Amendment) Act, 2025
The Banking Laws (Amendment) Act, 2025, notified on April 15, 2025, introduced 19 amendments across five major legislations —
- Reserve Bank of India Act, 1934,
- Banking Regulation Act, 1949,
- State Bank of India Act, 1955, and
- Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 and 1980.
According to the notification, the provisions under Sections 10, 11, 12, and 13—which deal with nomination facilities—will come into force from November 1, 2025.
These sections cover nominations for deposit accounts, safety lockers, and safe custody articles held with banks.
Key Features of the New Nomination System
1. Multiple Nominations
Depositors can now nominate up to four individuals, either simultaneously or successively, to make the claim process smoother and more flexible.
2. Nomination for Deposit Accounts
Depositors can choose:
- Simultaneous nominations – where all nominees are entitled to specific portions (must total 100%), or
- Successive nominations – where each nominee’s right arises only upon the death of the previous one.
3. Nomination for Lockers and Safe Custody Articles
For lockers and safe custody facilities, only successive nominations will be permitted, ensuring clear succession and secure asset transfer.
Implementation and Next Steps
The government said that the Banking Companies (Nomination) Rules, 2025—which will prescribe the detailed procedure and official forms for making, cancelling, or modifying nominations—will be issued soon.
These new rules are expected to create uniformity across all banks, ensuring that claim settlements are faster, more transparent, and legally robust.
In Summary
Starting November 1, 2025, depositors in India will enjoy greater flexibility under the new Banking Laws (Amendment) Act, 2025, with the ability to nominate up to four people for their bank accounts and lockers. The move marks a major step toward modernizing India’s banking laws and ensuring better protection for customers and their families.
