What Are the New Bank Nomination Rules Taking Effect on 1st November 2025

The new bank nomination rules set to take effect from 1st November 2025 will bring significant changes to how bank account holders and depositors designate nominees for their accounts, lockers, and safe custody items. Under the Banking Laws (Amendment) Act, 2025, customers will gain the flexibility to nominate up to four individuals for their bank-related assets. This reform aims to simplify, standardize, and speed up the claim settlement process, ensuring clarity and transparency for customers and nominees alike.

New Bank Nomination Rules

The new bank nomination rules introduced under the Banking Laws (Amendment) Act, 2025, represent a significant modernization of the nomination process for bank accounts, deposits, lockers, and safe custody items. Customers will now have the option to nominate up to four individuals either simultaneously or successively, providing greater flexibility and clarity in the distribution of their assets.

With simultaneous nomination, customers can specify percentage shares for each nominee that collectively add up to 100%, allowing multiple beneficiaries to claim their respective portions directly. Successive nomination, on the other hand, applies a priority order where the next nominee’s right activates only after the death of the preceding nominee, ensuring a clear and orderly transfer of assets.

Key Features of the New Bank Nomination Rules Starting 1st November 2025

Multiple Nominees Allowed: Customers can nominate up to four nominees for their bank accounts, fixed deposits, lockers, and articles in safe custody.

Simultaneous or Successive Nomination: For deposit accounts, customers can choose between simultaneous nomination (shares allocated among nominees totalling 100%) or successive nomination (nominees become active one after another in a priority order upon the death of the previous nominee).

Successive Nomination for Lockers and Safe Custody: For physical assets in lockers or safe custody, only successive nomination is allowed to ensure clear succession.

Clear Share Allocation: When opting for simultaneous nomination, customers must clearly specify the percentage shares for each nominee, summing up to 100%, to avoid disputes.

Uniform Implementation Across Banks: The Banking Companies (Nomination) Rules, 2025 will provide specific procedures, forms, and guidelines to ensure consistent application of these nomination provisions across all banks.

Enhanced Depositor Protection: These changes will promote transparency, reduce legal complications, and facilitate quicker transfer of assets to rightful nominees.

Impact on Depositors and Joint Account Holders

Flexibility in Nominations: Depositors can now nominate up to four individuals for each bank account, deposit, or locker, offering greater flexibility and control in asset distribution.​

Simplified Claim Process: The new rules ensure faster and more transparent claim settlements for nominees, reducing delays and disputes during asset transfer.​

Choice Between Nomination Types: Account holders can select simultaneous nominations (shared percentages among nominees) or successive nominations (priority-based succession system).​

Uniform Application Across Banks: All banks will follow standardized procedures under the Banking Companies (Nomination) Rules, 2025, ensuring consistency in claim handling and documentation.​

Enhanced Transparency for Joint Accounts: Joint account holders can mutually assign or update nominee details, ensuring clarity regarding entitlement in the event of any account holder’s death.​

Better Protection for Depositors: The amended law provides legal reinforcement for depositor rights, helping prevent misuse or disputes over unclaimed or inherited deposits.​

Streamlined Locker and Safe Custody Access: For lockers or safe deposits, only successive nominations are allowed, assuring orderly access for designated successors in unforeseen cases.​

Improved Record Management: Banks are mandated to maintain updated electronic nomination records, reducing manual errors and enhancing accountability under the new framework.