Bank Account Rule Change: A major change has come into effect for millions of bank customers across the country. The process of adding a nominee to a bank account has completely changed. The Central Government has implemented a new nomination system under the Banking Laws (Amendment) Act, 2025, effective November 1, 2025. This change will allow account holders to nominate up to four people in their account and also determine the share each nominee will receive. The government believes this move will make the banking system more transparent and dispute-free.
New System Implemented November 1
In a statement issued on October 23, the Finance Ministry stated that the provisions relating to nominations for bank accounts will become effective on November 1, 2025. The Banking Laws (Amendment) Act, 2025, was notified on April 15, 2025. Under this Act, the Reserve Bank of India Act, 1934, A total of 19 amendments have been made to five laws, including the Banking Regulation Act, 1949, the State Bank of India Act, 1955, and the Banking Companies Acts of 1970 and 1980. This aims to strengthen the banking sector.
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Four nominees can now be added to their account.
According to the new rules, account holders will be able to add up to four nominees to their account. This is easy to do. If a customer wishes to allocate an equal share, they can give 25 percent each to all four nominees. However, if they wish to allocate a higher or lower percentage to any nominee, that is also possible, as long as the total share is 100 percent. This will eliminate any disputes regarding the distribution of funds in the event of the account holder’s death and simplify the claim settlement process.
New rules for bank lockers implemented
The rules for bank lockers and the valuables stored in them will be slightly different. Only sequential nominations are allowed. This means that the second nominee will only receive the rights after the death of the first nominee. This system has been designed with security and transparency in mind. The Ministry states that these provisions will provide depositors with greater flexibility in choosing their preferred nominee and will make the claim process clearer.
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19 Major Amendments Made in Banking
This change in the banking sector was long overdue. A total of 19 amendments have been made to five major laws through the Banking Laws Act, 2025. These include important laws such as the RBI Act, 1934, and the Banking Regulation Act, 1949. The government has taken this step with the aim of modernizing the banking structure and making it convenient for customers.