From November 1, 2025, depositors can nominate up to four individuals under the new provisions of the Banking Laws (Amendment) Act, 2025, enhancing flexibility, transparency, and efficiency in bank account and locker claim settlements.
Thank you for reading this post, don't forget to subscribe!
NEW DELHI: In a move that aims to enhance depositor protection and simplify posthumous claim settlements, the Ministry of Finance has announced that the nomination-related provisions under the Banking Laws (Amendment) Act, 2025, will officially come into effect from November 1, 2025.
These provisions are designed to offer greater flexibility, transparency, and uniformity in the nomination process across banks, covering deposit accounts, articles held in safe custody, and safety lockers.
ALSO READ: Retired CISF Personnel Can Buy Liquor from CAPF Canteens: Kerala High Court
The Banking Laws (Amendment) Act, 2025, notified on April 15, 2025, introduces 19 amendments across five major banking legislations:
- Reserve Bank of India Act, 1934
- Banking Regulation Act, 1949
- State Bank of India Act, 1955
- Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
- Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980
The Act empowers the Central Government to bring different provisions into force in a phased manner. Accordingly, Sections 10, 11, 12, and 13, which relate to nominations, will come into operation on November 1, 2025.
One of the most notable reforms is the introduction of multiple nominations. Under the new provisions:
- Depositors can nominate up to four individuals, either simultaneously or successively.
- Each nominee’s entitlement percentage can be clearly specified, provided the total equals 100%.
- This framework ensures that the depositor’s wishes are clearly documented and that disputes among heirs or nominees are minimized.
For articles in safe custody and safety lockers, successive nominations (one after another) will be permitted. This ensures a clear, traceable process for claim settlement upon the depositor’s demise.
ALSO READ: Lokpal in India: India’s Anti-Corruption Mechanism Explained Amid BMW Tender Controversy
These provisions aim to create a uniform and efficient nomination mechanism across all banks in India. By clearly defining who is entitled to a deceased customer’s assets, the reforms will:
- Reduce legal disputes related to succession and inheritance;
- Simplify claim settlement procedures for banks and nominees; and
- Promote transparency and customer convenience across the banking ecosystem.
To support implementation, the government will issue the Banking Companies (Nomination) Rules, 2025, which will specify the prescribed forms and procedures for making, cancelling, or modifying nominations