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The new rules let account holders choose nominees as they wish, ensuring greater transparency, uniformity, and faster claim settlements across all bank accounts
The Ministry of Finance has stipulated that account holders must specify the percentage of rights for each nominee, which should total 100%. (Representative/Shutterstock)
Starting next month, bank account holders and locker users will experience significant relief as new rules come into effect, allowing for up to four nominees instead of just one. The government announced on Thursday that crucial provisions of the Banking Law (Amendment) Act, 2025 will be implemented from November 1.
According to a report by Mint, these provisions include updated rules concerning nominees. The government had previously indicated that Sections 10, 11, 12, and 13 of the Act would come into force next month. These sections pertain to nominees for bank accounts, items kept in safe custody, and bank lockers.
Guidelines For Account Holders And Nominees
Under the new regulations, account holders can designate up to four nominees for their bank accounts, who can be either simultaneous or successive. This change aims to streamline the process for account holders and their nominees when making claims.
For bank lockers, however, only successive nominations will be permitted. This means that if the first nominee is unavailable, the second nominee will take precedence, ensuring a smooth and clear claim process.
Benefits For Account Holders
The Ministry of Finance has stipulated that account holders must specify the percentage of rights for each nominee, which should total 100%. For example, with four nominees, the distribution might be 40% for the first nominee, 30% for the second, 20% for the third, and 10% for the fourth.
These new rules offer account holders the flexibility to choose nominees according to their preferences, promoting transparency, uniformity, and efficiency in the claim process.
Additionally, the Ministry has announced that the Banking Companies (Nomination) Rules, 2025 will be released soon, detailing the procedures and forms for appointing, cancelling, or modifying multiple nominees. These rules will be uniformly applied across all banks.
Easy Nominee Setup For Account Holders
The changes are part of the Banking Law (Amendment) Act, 2025, which updates several outdated laws, including the Reserve Bank of India Act, 1934, the Banking Regulation Act, 1949, the State Bank of India Act, 1955, and the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980.
These new regulations are expected to significantly benefit bank account holders, allowing them to easily designate family members or close associates as nominees, ensuring the security of their funds and locker contents.
This initiative is not only convenient for account holders but also strengthens the banking system, increasing public trust. This information is derived from general sources and the accuracy of the details cannot be guaranteed.
October 24, 2025, 10:32 IST
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