October is coming to an end, and a major change will happen in the country regarding bank accounts from the first of November. The Finance Ministry shared this information on Thursday. Under the new rules, account holders can now add up to four nominees for their bank accounts at once. The ministry said this change is being made to improve transparency in the banking system and make it easier to settle claims.
How You Can Select Four Nominees
Under the new rules, bank account holders can choose four nominees for their accounts. These nominees can be selected all at once or one by one. In simple words, account holders can decide whether all nominees will get their shares together or separately. The sequential nominee option means that after the death of the first nominee, the second nominee, then the third, and finally the fourth nominee can claim the account.
According to PTI, this change in rules for adding nominees has been made under the Banking Laws (Amendment) Act, 2025. It was notified on April 15, 2025.
Changes for Nominees in Lockers
According to reports, only consecutive nominees will be allowed for items kept in lockers. Account holders can choose up to four nominees and decide their share, which will total 100%. The Finance Ministry will soon issue rules to implement these reforms.
Other Banking Changes
Along with the nominee rules, public sector banks are getting several new powers under the changes, which will come into effect from November 1. State-owned banks can now transfer unclaimed shares, interest, and bond redemption proceeds to the Investor Education and Protection Fund.
For the first time since 1968, the interest limit has been increased from Rs 5 lakh to Rs 2 crore. The tenure of directors (excluding chairpersons and whole-time directors) in cooperative banks has also been increased from 8 years to 10 years.