New bank nomination rules will come into effect under the Banking Laws (Amendment) Act, 2025, starting November 1, 2025. The revised guidelines are aimed at giving depositors more flexibility and control over their money, the Finance Ministry said in a statement.
For the first time, customers can nominate up to four nominees for their bank accounts, fixed deposits, lockers, and safe custody articles.
Key objectives of new provisions
The new provisions aim to make the nomination process simpler, transparent, and uniform across all banks, ensuring faster claim settlement and better protection for depositors and their families.
These reforms are part of the government’s broader push to strengthen governance, enhance depositor safety, and promote customer convenience in the banking system.
“The Banking Laws (Amendment) Act, 2025 was notified on 15th April 2025 (Gazette Notification link attached below). It contains a total of 19 amendments across five legislations — the Reserve Bank of India Act, 1934, Banking Regulation Act, 1949, State Bank of India Act, 1955 and Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and 1980,” the statement said.
The provisions of the Banking Laws (Amendment) Act, 2025 “shall come into force on such date as the central government may, by notification in the Official Gazette, appoint” and different dates may be appointed for different provisions of the Act, the ministry said.
Accordingly, the central government has notified that the provisions contained in Sections 10, 11, 12 and 13 of the Banking Laws (Amendment) Act, 2025 shall come into force with effect from 1st November 2025.
These Sections 10, 11, 12 and 13 relate to nomination facilities in respect of deposit accounts, articles kept in safe custody, and the contents of safety lockers maintained with banks.
Key features of these provisions
Multiple Nominations: Customers may nominate up to four persons, either simultaneously or successively, thereby simplifying claim settlement for depositors and their nominees.
Nomination for Deposit Accounts: Depositors may opt for either simultaneous or successive nominations, as per their preference.
Nomination for Articles in Safe Custody and Safety Lockers: For such facilities, only successive nominations are permitted.
Simultaneous Nomination: Depositors may nominate up to four persons and specify the share or percentage of entitlement for each nominee, ensuring that the total equals 100 per cent and enabling transparent distribution amongst all nominees.
Successive Nomination: Individuals maintaining deposits, articles in safe custody, or lockers may specify up to four nominees, where the next nominee becomes operative only upon the death of the nominee placed higher, ensuring continuity in settlement and clarity of succession.
The implementation of these provisions will give depositors the flexibility to make nominations as per their preference, while ensuring uniformity, transparency, and efficiency in claim settlement across the banking system.
The Banking Companies (Nomination) Rules, 2025, detailing the procedure and prescribed forms for making, cancelling, or specifying multiple nominations, will be published in due course to operationalise these provisions uniformly across all banks, the ministry said.