New Banking Rules from November 1: Multiple Nominees Allowed for Bank Accounts and Lockers

The Finance Ministry has announced the implementation of key provisions under the Banking Laws (Amendment) Act, 2025, effective from November 1, 2025. These provisions aim to modernise the nomination process for bank deposit accounts, articles in safe custody, and safety lockers, enhancing flexibility and transparency for customers.

Major Legal Amendments under the 2025 Act

The Banking Laws (Amendment) Act, 2025, notified on 15 April 2025, introduces 19 amendments across five core 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) Acts of 1970 and 1980. The reforms are designed to simplify banking procedures and strengthen depositor rights.

Provision for Multiple Nominations

From November 1, customers can nominate up to four individuals for their deposit accounts, either simultaneously or successively. This marks a major shift from the earlier rule that permitted only a single nominee. Depositors can now allocate specific percentages of their funds to each nominee, ensuring the total equals 100 per cent. This flexibility is expected to make claim settlements more efficient and equitable.

Nomination Rules for Safe Custody and Lockers

For articles kept in safe custody and safety lockers, only successive nominations will be permitted. In such cases, the next nominee becomes eligible only upon the death of the preceding one. This system ensures clarity in succession and reduces disputes among claimants, particularly for valuables stored with banks.

Exam Oriented Facts

• The Banking Regulation Act, 1949, is the primary legislation governing banking operations in India.
• The Reserve Bank of India was established in 1935 under the RBI Act, 1934.
• Nomination facilities were first introduced in Indian banking in the early 1980s to streamline claims after a depositor’s death.
• Public sector banks in India were nationalised in two phases — in 1969 and 1980.

Impact on Customers and the Banking Sector

The revised nomination framework will improve depositor convenience and ensure smooth transmission of assets to rightful nominees. Banks are expected to update their internal systems and forms to align with the new structure. The move aligns with the government’s broader effort to strengthen consumer rights, promote financial inclusion, and reduce legal complexities in post-death settlements.