Banking nominee rules to change from 1 November; Here’s what you need to know

According to the new provisions, bank account holders can now nominate up to four nominees simultaneously or sequentially. This means that the account holder can decide, as per their wish, which nominee will be able to claim first and who will be entitled to claim later.

New Delhi: Bank customers are now welcome to add up to four nominees to their bank accounts. This feature will become effective from November 1, 2025. The Finance Ministry announced this on Thursday, stating that this change was made under the Banking Laws (Amendment) Act, 2025. The move aims to simplify, transparently, and uniformly process claims settlement in the banking system.

What Is New Rule?

According to the new provisions, bank account holders can now nominate up to four nominees simultaneously or sequentially. This means that the account holder can decide, as per their wish, which nominee will be able to claim first and who will be entitled to claim later.

The Finance Ministry has stated that the depositor can also set a percentage share or eligibility for each nominee so that 100% of the total amount is distributed transparently among all nominees.

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Rules Also Apply To Lockers And Safe Custody

The amended rules also provide for a nominee for items kept in bank lockers or safe custody. However, only sequential nomination will be permitted. This means that if the first nominee dies, only then will the second nominee be able to stake a claim. This will maintain clarity and continuity of succession.

Major Changes in Banking Laws

The Banking Laws (Amendment) Act, 2025, makes a total of 19 amendments to five major laws—

• Reserve Bank of India Act, 1934
• Banking Regulation Act, 1949
• State Bank of India Act, 1955
• Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 and 1980

These amendments aim to strengthen banking governance, ensure uniformity in reporting to the RBI, enhance depositor and investor protection, and improve audit quality.

Customers Will Benefit Significantly

According to the Finance Ministry, these provisions will give bank customers the freedom to choose a nominee of their choice. This will not only speed up and simplify the claim settlement process but also reduce the likelihood of disputes.

In addition, uniformity, transparency, and efficiency will be ensured in the banking system.

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Other Provisions Also Came Into Effect

The government has also made some other amendments in the gazette notification dated July 29, 2025:

• The threshold for "substantial interest" has been increased from ₹5 lakh to ₹2 crore.
• The tenure of directors in cooperative banks will now be up to 10 years.
• Public sector banks will also have the right to remunerate their statutory auditors.

These new provisions, which will come into effect from November 1, 2025, will provide new direction to customer convenience, transparency, and security in the banking sector. The ability to add up to four nominees will provide bank account holders with better control and clearer succession management.