Customers may nominate up to four persons, either simultaneously or successively, thereby simplifying claim settlement for depositors and their nominees.
In a significant development, a bank customer will soon be allowed to opt for up to four nominees in her or his account. The decision is expected to ensure uniformity and efficiency in claim settlement across the banking system. According to the Ministry of Finance, the key provisions relating to Nomination under the Banking Laws (Amendment) Act, 2025, will come into effect from November 1, 2025. The provisions being brought through Sections 10, 11, 12 and 13 relate to nomination facilities in respect of deposit accounts, articles kept in safe custody, and the contents of safety lockers maintained with banks.
Nominate simultaneously or successively
As per the amendments, customers may nominate up to four persons, either simultaneously or successively, thereby simplifying claim settlement for depositors and their nominees.
Depositors may opt for either simultaneous or successive nominations, as per their preference, the ministry said in a statement.
Only successive nominations allowed in case of lockers
With regard to nomination for articles in safe custody and safety lockers, it said, only successive nominations are permitted.
“Depositors may nominate up to four persons and specify the share or percentage of entitlement for each nominee, ensuring that the total equals 100 per cent and enabling transparent distribution amongst all nominees,” it said.
The Banking Laws (Amendment) Act, 2025 was notified on April 15, 2025.
It contains a total of 19 amendments across five legislations — the Reserve Bank of India Act, 1934, Banking Regulation Act, 1949, State Bank of India Act, 1955 and Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and 1980.
Individuals maintaining deposits, articles in safe custody, or lockers may specify up to four nominees, where the next nominee becomes operative only upon the death of the nominee placed higher, ensuring continuity in settlement and clarity of succession, it said.
Key features are as follows:
- Multiple Nominations: Customers may nominate up to four persons, either simultaneously or successively.
- Nomination for Deposit Accounts: Depositors may opt for either simultaneous or successive nominations, as per their preference.
- Nomination for Articles in Safe Custody and Safety Lockers: For such facilities, only successive nominations are permitted.
- Simultaneous Nomination: Depositors may nominate up to four persons and specify the share or percentage of entitlement for each nominee, ensuring that the total equals 100 percent and enabling transparent distribution amongst all nominees.
- Successive Nomination: Individuals maintaining deposits, articles in safe custody, or lockers may specify up to four nominees, where the next nominee becomes operative only upon the death of the nominee placed higher, ensuring continuity in settlement and clarity of succession.
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