New Delhi: From November 1, bank customers will be able to nominate up to four persons for their deposit accounts, safe custody articles and safety lockers, under the new nomination framework introduced through the Banking Laws (Amendment) Act, 2025.
The revised norms, which allow both simultaneous and successive nominations, aim to simplify and speed up claim settlements, while offering greater flexibility and transparency to depositors.
The central government has notified that Sections 10, 11, 12 and 13 of the Amendment Act — pertaining to nomination facilities — will come into force from November 1. The Act itself was originally notified on April 15, 2025, and contains 19 amendments across five key 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.
Under the new framework, depositors will have the option to make simultaneous nominations, where up to four nominees can be named with specified percentage entitlements adding up to 100%. This will ensure transparent distribution among all nominees. Alternatively, they can opt for successive nominations, where the right passes to the next nominee only upon the death of the one placed higher in order. For safety lockers and articles kept in safe custody, only successive nominations will be permitted.
The move is expected to bring uniformity, efficiency, and clarity in claim settlements across the banking system, while empowering depositors with flexible nomination choices tailored to their preferences.
To operationalise these provisions, the government will soon publish the Banking Companies (Nomination) Rules, 2025, which will prescribe the detailed procedures and forms for making, cancelling, or modifying multiple nominations.
Earlier, through a separate notification dated July 29, 2025, the Centre had brought into force other provisions of the Act — specifically Sections 3, 4, 5, 15, 16, 17, 18, 19 and 20 — with effect from August 1, 2025.
The Banking Laws (Amendment) Act, 2025 marks a significant reform aimed at strengthening governance in the banking sector, improving depositor and investor protection, enhancing audit quality in public sector banks, and standardising reporting to the Reserve Bank of India. The introduction of the multiple nomination facility represents a key customer-centric step towards streamlined succession, transparency, and depositor convenience.