Banking system changes: A major change is coming to bank customers starting November 1, 2025. You will now be able to nominate four people, not just one, for your bank account, locker, and safe custody. This change has been made under the Banking Laws (Amendment) Act 2025.
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Banking system changes: A major change is coming to bank customers starting November 1, 2025. You will now be able to nominate not just one, but four people for your bank account, locker, and safe custody. This change has been made under the Banking Laws (Amendment) Act 2025. The government has stated that these new rules will come into effect on November 1.
What’s going to change?
Until now, most bank accounts only allowed for one nominee. But now, customers can nominate up to four people if they wish. This means that if something happens to the account owner, the bank will give control of the money or locker to only those people whom the account owner has previously nominated.
How to become a nominee
An account holder can nominate up to four nominees at a time and can also decide on the percentage of each nominee’s share. For example, the first nominee will receive 40%, the second 30%, the third 20%, and the fourth 10%. In this system, if the first nominee dies, the second nominee will take their place. This procedure will apply to locker and safe custody cases.
Why the new rule was necessary
Frequently, after the death of an account holder, there was a dispute within the family regarding who would inherit the money or contents of the locker. These new rules will largely eliminate this problem. Now, the bank will have a record of who will receive what share.
What’s next?
The government will soon release the Banking Companies (Nomination) Rules, 2025. This will explain how an individual can add, change, or remove a nominee. This process will be consistent across all banks.
What will change from November 1?
The government has issued a notification stating that it has amended the nomination rules related to bank deposit accounts, lockers, and safe custody. This Act was notified in April 2025, and a total of 19 amendments have been made. These amendments have been made to a total of five laws.
Reserve Bank of India Act, 1934
Banking Regulation Act, 1949
State Bank of India Act, 1955
Banking Companies Acts, 1970 and 1980
