Flexible Nomination Options Coming for Bank Customers
Bank customers in India are about to gain significant new flexibility in how they manage their assets after death. Key provisions of the Banking Laws (Amendment) Act, 2025, are scheduled to take effect on November 1, 2025. These new rules will modernise the nomination facilities for deposit accounts, articles kept in safe custody, and safety lockers. The changes are designed to make the claim settlement process more transparent, efficient, and aligned with the depositor's specific wishes.
These new rules are part of the broader Banking Laws (Amendment) Act, 2025, which was notified in April. The act contains 19 amendments across five major banking laws, including the RBI Act, 1934, and the Banking Regulation Act, 1949. The Central Government is activating different provisions in phases, with these new nomination rules being the latest to roll out.
Key Changes to the Nomination Process
The most significant change is the introduction of multiple nominations. Under the new rules, customers can nominate up to four individuals for their accounts. This provides a major update to the previous, more rigid system. The rules create two distinct types of nomination to give customers more choice in how their assets are distributed.
Simultaneous Nominations for Deposits
For deposit accounts, customers can now use "simultaneous nomination." This allows them to name up to four people at once. More importantly, the depositor can specify the exact share or percentage that each nominee will receive. This ensures a transparent and clear distribution of funds upon the depositor's death. The only requirement is that the total shares assigned to all nominees must add up to 100 percent. This new feature is expected to significantly reduce disputes among heirs and legal-claim settlements.
How Successive Nominations Will Work
The second option is "successive nomination." This provision applies to deposit accounts, articles held in safe custody, and safety lockers. Under this model, a customer can again name up to four nominees. However, they are placed in a specific order of succession. The next nominee in line only becomes active upon the death of the nominee ranked higher. For safe custody and safety lockers, this successive model is the only type of multiple nomination permitted.
Simplifying Claim Settlements
These new provisions aim to empower depositors, giving them greater control and preference in their financial planning. By allowing for multiple and specific nominations, the government hopes to ensure uniformity across the banking system. This will lead to faster, more efficient, and less contentious claim settlements for families.
The Central Government will publish the detailed Banking Companies (Nomination) Rules, 2025, in the near future. These rules will outline the specific forms and procedures for banks to implement these new changes uniformly. This reform is part of the 2025 Act's larger vision to strengthen banking governance, protect depositors, and promote customer convenience.
Official Notifications and Links:
Gazette Notification S.O. 4789 (E) dated 22.10.2025: https://egazette.gov.in/(S(ez1raoliuesdpfg0gurwb5uo))/ViewPDF.aspx
Gazette Notification dated 15th April 2025: https://financialservices.gov.in/beta/sites/default/files/2025-05/Gazettee-Notification_1.pdf
Gazette Notification S.O. 3494(E) dated 29th July 2025: https://egazette.gov.in/WriteReadData/2025/265059.pdf
Earlier PIB release dated 30th July 2025: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2150371
