New Banking Change: Multiple Nominations, Clearer Succession & Stronger Governance from Nov 1, 2025
Starting November 1, 2025, India’s banking landscape will see a major shift under the Banking Laws (Amendment) Act, 2025.. giving depositors more control, clarity, and protection over their money and nominations.
Effective November 1, 2025, the Banking Laws (Amendment) Act, 2025, will allow customers to appoint up to four nominees for their bank accounts and lockers.
This reform aims to simplify the claim settlement process, boost governance standards, and reduce the amount of unclaimed deposits in the banking system.
This isn’t just another regulatory tweak, it’s a reform that simplifies inheritance, enhances transparency, and strengthens governance in the banking sector.
What’s Changing:
1️⃣ Up to Four Nominations (More Control for Depositors)
Till now, most accounts allowed only one nominee, often creating disputes later. From Nov 1, depositors can nominate up to four people:
Simultaneous nomination (all nominees get fixed percentage shares — total 100%)
Successive nomination (next nominee becomes valid only if the earlier one passes away)
This ensures flexibility, smoother claims, and less family conflict.
2️⃣ Locker & Safe Custody Rules Simplified (Clearer Ownership Path)
For bank lockers and safe custody items, only successive nominations will be allowed. (This means assets will pass one by one, ensuring clarity and preventing overlapping claims.)
3️⃣ Uniform Nomination Rules Across All Banks (Consistency in Process)
All banks — public and private — will soon follow standardised rules under the upcoming Banking Companies (Nomination) Rules, 2025. (This will ensure the same paperwork, procedure, and claim process everywhere.)
The Goals:
✅ Stronger governance standards (better oversight in bank boards)
✅ Improved depositor protection (faster claim resolution & transparency)
✅ Enhanced audit quality in PSBs (reducing risk & misreporting)
Why It Matters:
This reform bridges a crucial gap, between what a depositor intends and how that intent is executed after their death.
(Multiple nominations = smoother inheritance. Uniform rules = faster settlement. Stronger governance = safer deposits.)
It’s a step toward making Indian banking more customer-centric and legally resilient.
Effective Date: November 1, 2025
🏛️ Announced by: Ministry of Finance, Government of India
A procedural reform, but a powerful move toward depositor empowerment and financial clarity.
Team- Intellex Strategic Consulting Private Limited
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