New Delhi: The Union Government has announced that key provisions relating to nomination under the Banking Laws (Amendment) Act, 2025 will come into force from November 1, 2025. These provisions, contained in Sections 10, 11, 12, and 13 of the Amendment Act, pertain to nomination facilities for bank deposit accounts, articles held in safe custody, and the contents of safety lockers.
The Banking Laws (Amendment) Act, 2025, which was notified on April 15, 2025, introduces a total of 19 amendments across five legislations, including the Reserve Bank of India Act, 1934, and the Banking Regulation Act, 1949.
Under the new rules effective November 1, customers gain the flexibility to make multiple nominations. Depositors may now nominate up to four persons for their accounts, either simultaneously or successively. Simultaneous nomination allows depositors to specify the share or percentage of entitlement for each of the up to four nominees, ensuring the total equals 100 percent. Successive nomination permits individuals to specify up to four nominees in a sequence, where the next nominee becomes entitled only upon the death of the one placed higher.
For articles in safe custody and safety lockers, however, only successive nominations are permitted, limited to four nominees.
The government stated that the implementation of these provisions is intended to give depositors more flexibility, while ensuring uniformity, transparency, and efficiency in claim settlement across the banking system. The Banking Companies (Nomination) Rules, 2025, which will detail the procedure and forms for these new nomination facilities, are expected to be published shortly to operationalise the changes.
It is noted that other sections of the Amendment Act, namely Sections 3, 4, 5, 15, 16, 17, 18, 19, and 20, had already been brought into effect from August 1, 2025. The overall aim of the Banking Laws (Amendment) Act, 2025 is to strengthen governance standards, enhance depositor and investor protection, improve audit quality, and promote customer convenience through better nomination facilities.