Banking Rules 2025: Big news for bank customers. You will now be able to nominate up to four nominees for your bank account. The Finance Ministry said on Thursday that the new system will come into effect from November 1, 2025. The key provisions related to nomination of individuals in accounts will come into effect from next month under the Banking Laws (Amendment) Act 2025. This Act was notified on April 15, 2025.
Under this, a total of 19 amendments have been made in five 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 1970 and 1980.
How to make a nominee?
According to the Finance Ministry, following these amendments, bank customers can nominate up to four individuals, either simultaneously or sequentially, to their accounts. This will facilitate claim settlement for account holders or their legal heirs.According to the ministry, to bring transparency in the account nomination process, customers will also be able to determine the share or percentage of each nominee so that the total share is 100 percent and there is no scope for any kind of dispute.
Priority list will have to be given for locker
Only sequential nominations are permitted for safekeeping and lockers at the bank. This means that upon the demise of one nominee, the next nominee will inherit the rights. “These provisions will provide flexibility to bank depositors to appoint a nominee of their choice. They will also ensure equity, transparency and efficiency in claims settlement across the banking system,” the ministry said.
The Banking Companies (Nomination) Rules, 2025, will also be notified in due course. These will detail the process for making, cancelling, or multiple nominations, and the documents required for the same.