Multiple Nominees Now Permitted for Bank Accounts and Lockers in India From November 2025

Starting November 1, 2025, account holders will be able to nominate up to four individuals for their bank accounts, safe custody articles, and safety lockers.

New Delhi:

The Finance Ministry announced on Thursday that key nomination provisions under the Banking Laws (Amendment) Act, 2025 will take effect from November 1 this year.

These provisions specifically address nomination facilities for deposit accounts, articles kept in safe custody, and contents of safety lockers maintained with banks.

The Act, which was officially notified on April 15, 2025, encompasses 19 amendments across five major financial legislations: the Reserve Bank of India Act, 1934; Banking Regulation Act, 1949; State Bank of India Act, 1955; and the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980.

According to the notification, the provisions of the Banking Laws (Amendment) Act, 2025 "shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint." The government may set different implementation dates for various provisions within the Act.

The Central Government has now confirmed that Sections 10, 11, 12, and 13 of the Banking Laws (Amendment) Act, 2025 will become effective from November 1, 2025.

Key features of these provisions include allowing customers to nominate up to four persons either simultaneously or successively, which will simplify the claim settlement process for depositors and their nominees. Depositors may choose between simultaneous or successive nominations according to their preference, while for Articles in Safe Custody and Safety Lockers, only successive nominations will be permitted.

Depositors can nominate up to four individuals and specify each nominee's share or percentage entitlement, ensuring the total equals 100 percent, thereby enabling transparent distribution among all nominees.

Individuals with deposits, safe custody articles, or lockers may designate up to four nominees, with the provision that subsequent nominees become operative only after the death of higher-placed nominees, ensuring continuity and clarity in succession.

Implementing these provisions will provide depositors flexibility in making nominations according to their preferences while ensuring uniformity, transparency, and efficiency in claim settlement across the banking system.

The Banking Companies (Nomination) Rules, 2025, which will detail procedures and prescribed forms for making, canceling, or specifying multiple nominations, will be published soon to ensure uniform implementation across all banks.

The Banking Laws (Amendment) Act, 2025 aims to strengthen banking sector governance standards, ensure uniform reporting to the Reserve Bank of India, enhance depositor and investor protection, improve audit quality in public sector banks, and promote customer convenience through improved nomination facilities. The Act also rationalizes the tenure of directors (excluding the Chairman and whole-time directors) in co-operative banks.