Big Banking Changes from November 1: Customers Can Add Up to Four Nominees per Account

From November 1, 2025, several new banking rules will come into effect under the Banking Law (Revision) Act, 2025, aimed at increasing transparency, improving management, and enhancing customer convenience. Among the most significant updates is the provision allowing account holders to add up to four nominees in their bank accounts and lockers. These reforms are designed to make claim settlements faster, reduce disputes, and simplify the entire nomination process.

Four Nominees Allowed in One Account

Under the revised law, customers can now nominate up to four individuals for their savings or deposit accounts. Until now, only one nominee could be added per account, often causing challenges during claim settlements after the account holder’s death.

Now, the nomination can be done in two ways:

Simultaneous Nomination: All nominees will have a predefined percentage of share in the account balance. The total share among all nominees must equal 100%. This method ensures that funds are distributed transparently as per the account holder’s choice.

Successive Nomination: In this format, the next nominee becomes eligible only if the previous nominee is no longer alive. This system simplifies the claim transfer process and minimizes confusion among family members.

This update will significantly reduce legal disputes and delays in claim settlements while ensuring smoother fund distribution.

New Rules for Bank Lockers and Safe Custody

The new provisions also extend to bank lockers and safe custody articles. In these cases, only successive nominations will be allowed. This means if the first nominee is not alive at the time of claim, the next nominee will automatically become eligible.

This step eliminates ambiguity in ownership and ensures that locker contents or safe custody items are handed over to the rightful nominee without legal complications.

Transparent and Hassle-Free Distribution of Shares

One of the most customer-friendly aspects of the new law is the transparent allocation of shares among nominees. Account holders can now decide what percentage each nominee will receive, bringing complete clarity and preventing future disputes among heirs.

Banks will be able to process claims more efficiently, as the distribution ratios will already be specified. This reduces the chances of confusion or conflict between nominees and simplifies documentation for banks as well.

Uniform Rules for All Banks Coming Soon

In addition to these reforms, the government plans to issue the Banking Companies (Nomination) Rules, 2025, which will standardize the nomination process across all banks. These rules will define clear procedures for adding, modifying, or canceling nominations, ensuring consistency in how banks handle customer requests.

This move will not only improve the ease of doing banking but also align the nomination process across public and private sector banks.

What This Means for Bank Customers

From November 1, bank account holders and locker users will experience greater flexibility and control over their nominations. The option to add up to four nominees allows better estate planning and ensures that loved ones receive their rightful share without delays or disputes.

Moreover, with email and mobile number details of nominees being mandatory, the entire system becomes more transparent and traceable.

Conclusion

The Banking Law (Revision) Act, 2025, marks a major step toward modernizing India’s banking system. By allowing multiple nominees, introducing percentage-based share allocation, and simplifying claim processes, the government aims to make banking more customer-centric and secure.

Starting November 1, these new rules will empower customers to plan their finances better, ensure smoother inheritance of funds, and bring long-awaited transparency to the country’s banking framework.