New bank nomination rules 2025: Opt for up to four nominees from November 1; top points to know
What are the new bank nomination rules?
Top points
- According to the revised provisions, account holders can nominate up to four individuals, either simultaneous or in succession – a step that will facilitate a straightforward claim settlement process for both depositors and nominees.
- Account holders have the choice to select either simultaneous or successive nominations based on their requirements.
- Up to four nominees can be designated by depositors, with specific allocation of shares or percentages for each, totalling 100 per cent, which ensures clear distribution amongst all nominees.
- For deposits, articles in safe custody, or lockers, individuals can specify up to four nominees.
The subsequent nominee becomes active only after the death of the higher-placed nominee, ensuring seamless settlement and succession clarity.
- For items kept in safe custody and safety deposit lockers, the regulations permit only successive nominations.
These provisions allow depositors flexibility in making nominations according to their preferences, whilst maintaining uniformity, transparency and efficiency in claim settlements across the banking sector.The Banking Companies (Nomination) Rules, 2025, which will outline procedures and forms for making, cancelling, or designating multiple nominations, will be issued to implement these provisions across banks.“The central government had earlier appointed August 1, 2025 as the date on which certain provisions of the said Amendment Act, namely Sections 3, 4, 5, 15, 16, 17, 18, 19 and 20, came into force vide Gazette Notification S.O.
3494(E) dated 29th July 2025,” it said.
