Bank Rule Change from November 1: From 1st November 2025, new rules under the Banking Laws (Amendment) Act, 2025, will come into effect, changing how bank customers can make nominations.
These changes aim to make it easier, clearer, and more flexible for depositors to decide who gets their money or valuables in case of their death.
The Act, notified on 15th April 2025, brings 19 amendments across several banking laws, including the Reserve Bank of India Act, Banking Regulation Act, State Bank of India Act, and Banking Companies Acts.
The Central Government has decided that the Sections 10, 11, 12, and 13—which deal with nominations—will start on 1st November 2025. These sections cover deposit accounts, safe custody items, and locker contents.
Key points of the new nomination rules:
Multiple Nominations: You can nominate up to four people, either at the same time or one after another.
Deposit Accounts: You can choose simultaneous nominations (all nominees get a fixed share) or successive nominations (the next nominee becomes active only if the earlier nominee passes away).
Safe Custody and Lockers: For items in safe custody and locker facilities, only successive nominations are permitted. This ensures a clear and structured succession, reducing potential disputes among claimants.
Transparent Shares: For simultaneous nominations, you can divide the total entitlement among nominees, ensuring the total adds up to 100 per cent.
The Banking Companies (Nomination) Rules, 2025, will be published soon, explaining the forms and procedures for making or updating nominations.
Why this matters to you
For customers, these changes provide an opportunity to review and update existing nominations according to their current family or financial situation.
Depositors can now plan for multiple beneficiaries, ensuring that their funds, valuables, or safe custody items are distributed according to their wishes without legal complications.
Earlier, some other provisions of the Amendment Act came into effect from 1st August 2025, and the Act overall aims to improve governance, protect depositors and investors, strengthen audits in public sector banks, and make banking more customer-friendly.
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