News Brief
From 1 November, Banks To Allow Customers To Nominate Four People For Their Accounts
The Ministry of Finance
The Ministry of Finance on Thursday (23 October) announced that key provisions of the Banking Laws (Amendment) Act, 2025—specifically those governing bank nominations—will come into force from 1 November, introducing a more flexible and transparent system for depositors and account holders across India.
Under the new framework, customers will be able to nominate up to four individuals for their deposit accounts, articles in safe custody, and safety lockers.
These nominations can be made either simultaneously or successively, depending on the depositor’s preference.
The change is expected to make claim settlements faster and more transparent, reducing disputes among legal heirs.
For deposit accounts, customers may choose between simultaneous or successive nominations, while for lockers and safe custody items, only successive nominations will be allowed.
For simultaneous nomination, depositors may nominate up to four persons and specify the share or percentage of entitlement for each nominee, ensuring that the total equals 100 percent and enabling transparent distribution amongst all nominees.
The ministry said that the implementation of these provisions will give depositors the flexibility to make nominations as per their preference, while ensuring uniformity, transparency, and efficiency in claim settlement across the banking system.
"The Banking Companies (Nomination) Rules, 2025, detailing the procedure and prescribed forms for making, cancelling, or specifying multiple nominations, will be published in due course to operationalise these provisions uniformly across all banks," the ministry added.
The amendment, passed earlier this year and notified on 15 April 2025, is part of a wider set of 19 legislative changes across key banking laws, including the Reserve Bank of India Act (1934) and the Banking Regulation Act (1949).
The reform aims to enhance depositor protection, strengthen governance in public sector banks, improve audit quality, and streamline customer services.
