Multiple nominations, smoother claims: Nov 1 banking changes explained

From November 1, depositors can nominate up to four people for accounts and lockers, making claims easier and succession of assets smoother

 

The Ministry of Finance has announced that key sections of the Banking Laws (Amendment) Act, 2025, covering nomination facilities, locker regulations and depositor protection, will come into effect from November 1, 2025.

   

The amendments are part of a broader push to strengthen governance and improve transparency across banks. The new provisions amend multiple legislations, including the Banking Regulation Act, 1949, and the State Bank of India Act, 1955.

   

According to a Finance Ministry notification dated October 23, 2025, the changes aim to enhance customer convenience and ensure uniform processes across all banks.

   

What’s new for depositors

   

Under the revised rules, depositors will have greater flexibility in nominating beneficiaries for their bank deposits, lockers and assets in safe custody.

   

Multiple nominations for deposits

   Customers can now nominate up to four individuals for a single deposit account. 

• Nominations can be made either simultaneously (all at once) or successively (one after another).

This makes it easier for families to claim funds without legal complications in case of the depositor’s death.

 

 

Simultaneous nomination

   

Up to four nominees can be specified, with each assigned a percentage share of the deposit (totalling 100 per cent).

 

This ensures clear and transparent distribution of funds among all nominees.

   

Successive nomination

   

In this format, the next nominee becomes eligible only after the previous nominee’s death.

 

It provides continuity and clarity in succession, particularly useful for long-term deposits or joint holdings.

   

Nomination for lockers and safe custody

   

For lockers and articles held in safe custody, only successive nominations are allowed.

 

This helps avoid disputes and ensures smooth transfer of contents in case of unforeseen events.

   

Why this matters

   

The move is expected to reduce delays in claim settlements and bring uniformity across banks. It will also help depositors plan better for the succession of their assets.

   

The government will soon notify the Banking Companies (Nomination) Rules, 2025, which will detail the paperwork and process for creating, modifying or cancelling nominations.

   

As per the State Bank of India (SBI) website, nomination is available for all deposit accounts, lockers and safe custody items held by individuals, whether in single or joint capacity.