RBI New Banking Rules: The Reserve Bank of India (RBI) has issued new guidelines regarding the nomination facility in bank accounts, which will come into effect from November 1st, 2025. These rules will apply to deposit accounts, safe deposit lockers, and items kept in safe custody by banks. Their purpose is to protect the interests of bank customers and facilitate the settlement of claims by their families after their death.

These people will benefit from the nomination facility

The primary purpose of the nomination facility is to ensure that, after the account holder’s death, the money deposited in the bank, the locker, or other items reach the rightful heirs through a simple and quick process. The RBI states that this facility will save family members from complex paperwork or legal hassles. However, the new rules clarify that nomination will not be mandatory. Customers can open accounts without nomination if they wish.

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Customers will have the right to nominate

According to the RBI, banks must provide every customer with clear information about the nomination facility and explain how it can be beneficial. However, if a customer does not wish to nominate, the bank cannot prevent them from opening an account or delay the process.

In such cases, the customer must provide a written declaration stating that they do not require a nomination. If the customer does not provide this declaration, the bank will assume that they have refused to nominate. This system aims to maintain transparency and give customers complete freedom to make decisions.

RBI has made these rules

RBI has also made provisions for situations where the nominee dies before the account holder. In such cases, the nomination will be considered invalid for that nominee, and the claim process will be completed as per the rules for accounts without a nominee.

Furthermore, banks must ensure that they properly record all records related to the nomination, such as registration, cancellation, or change, in their systems. This will ensure accurate documentation of the customer’s wishes and avoid any future disputes.

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Four people can be nominated in one account

Under the Banking Laws (Amendment) Act, 2025, recently notified by the Government of India, account holders will now be able to add up to four nominees to a single account. They will also be able to set the share or percentage for each nominee.

In addition, customers will also be given the option of “Sequential Nominee.” This means that if the first nominee dies before the account holder, the next nominee will automatically become active. This arrangement ensures the correct distribution of assets and reduces the possibility of inheritance disputes.