Home Banking & Finance Finance Ministry introduces new banking nomination rules on Nov 1st, allowing multiple...

Finance Ministry introduces new banking nomination rules on Nov 1st, allowing multiple nominees

By

-

23 October 2025

Follow Ziraat Times on Whatsapp - Join Now

Ziraat Times News Desk

NEW DELHI — Depositors across India, including Jammu & Kashmir, will gain new flexibility in managing their finances as key provisions of the Banking Laws (Amendment) Act, 2025, related to nomination facilities are set to take effect on November 1, 2025.

The Ministry of Finance announced that Sections 10, 11, 12, and 13 of the Amendment Act, which governs nominations for bank deposits, articles in safe custody, and safety lockers, will be activated next month. These changes are designed to enhance depositor protection, promote customer convenience, and ensure uniformity, transparency, and efficiency in claim settlement.

Key Changes to the Nomination Process

The new rules provide customers with unprecedented flexibility, moving beyond the current system which often limits nominations to a single individual. The key features of the provisions coming into force are:

Feature	Details	Benefit
Multiple Nominations	Customers can nominate up to four persons for a single facility (deposit, safe custody, or locker).	Simplifies claim settlement and allows for transparent distribution among family members.
Simultaneous Nomination	Depositors can nominate up to four people and specify the share or percentage of entitlement for each nominee. The total shares must equal 100%.	Ensures clarity and distribution according to the customer’s wishes.
Successive Nomination	Customers can specify up to four nominees in a ranked order, where the next nominee becomes operative only upon the death of the nominee placed higher.	Guarantees continuity in settlement and clear succession, particularly useful for minors.
Applicability	Customers can opt for either simultaneous or successive nominations for deposit accounts.
Safe Custody & Lockers	Only successive nominations are permitted for articles kept in safe custody and the contents of safety lockers.

Strengthening Governance and Protection

The Banking Laws (Amendment) Act, 2025, which was originally notified on April 15, 2025, integrates 19 amendments across five core legislations, including the Reserve Bank of India Act, 1934, and the Banking Regulation Act, 1949.

While the nomination facilities improve customer convenience, the broader aims of the Act are to strengthen governance standards in the banking sector, improve audit quality in Public Sector Banks (PSBs), and provide for the rationalisation of the tenure of non-whole-time directors in co-operative banks.

The Ministry of Finance confirmed that the procedural rules necessary to operationalize these changes, known as the Banking Companies (Nomination) Rules, 2025, which will detail the procedure and prescribed forms for making or cancelling multiple nominations, will be published “in due course.”

It is noted that other provisions of the Amendment Act, relating to governance and reporting, have already been implemented, having come into force on August 1, 2025.

LEAVE A REPLY Cancel reply