New Delhi, Oct 24, 2025 - Starting November 1, 2025, bank customers will be able to add up to four nominees to their bank accounts. Customers can add these nominees either one by one or all at once, depending on their convenience. The Ministry of Finance announced this yesterday, October 23, and said that this new arrangement will take effect from November 1, 2025. Under the Banking Laws (Amendment) Act, 2025, the key provisions related to the nomination of individuals in bank accounts will come into force next month.

This Banking Laws (Amendment) Act, 2025, was notified on April 15, 2025, and includes a total of 19 amendments to five major laws — the Reserve Bank of India Act, 1934, the Banking Regulation Act, 1949, the State Bank of India Act, 1955, and the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980.

How to Add a Nominee

According to the Ministry of Finance, after these amendments, bank customers will be able to add up to four individuals as nominees to their accounts, either simultaneously or in stages. This change will make claim settlements easier for account holders or their legal heirs.

Nominee’s Share

To enhance transparency, customers will be able to specify the share or percentage of each nominee, ensuring the total adds up to 100% and preventing potential disputes.

Locker Nomination

For bank lockers and safe-kept items, only sequential nomination will be allowed. This means that the next nominee will gain rights only after the death of the previous nominee.

According to the Ministry, “These provisions will give depositors flexibility to nominate persons according to their preference, while ensuring uniformity, transparency and efficiency in the claim settlement process across the banking system.”

The Banking Companies (Nomination) Rules, 2025, will also be notified soon, detailing the procedures and documentation required for making, cancelling or updating multiple nominations.

Objective of Act

The purpose of this Act is to strengthen operational standards in the banking sector, standardise reporting systems, enhance depositor and investor protection, improve audit quality in public sector banks and increase customer convenience.

It also rationalises the tenure of cooperative bank directors — except for the Chairman and full-time directors, the maximum term for other directors has been extended from 8 to 10 years.

Additionally, under the latest amendments, public sector banks can now transfer unclaimed or unpaid shares, interest and bond payments to the Investor Education and Protection Fund (IEPF), bringing them in line with the provisions of the Companies Act.

The government has also revised the definition of “substantial shareholding” for the first time since 1968 — raising the threshold from Rs 5 lakh to Rs 2 crore.

Impact of Changes

• Banking operations will become more transparent and efficient.
• Security of your money and lockers will be enhanced.
• The new nomination rules will make things easier for your family.
• Old regulations have been updated to match today’s needs, improving the overall banking experience.

Meaning of Nominee

A nominee is a person designated in a bank account, investment, or insurance policy who is entitled to claim the funds in the event of the account holder’s death.

After the account holder’s death, the nominee can claim the funds, but the amount is released only if there is no dispute. If the deceased has legal heirs, they can also claim their rightful share of the money. In such cases, the funds or property are distributed equally among all legal heirs.

Source: Media Reports

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