Key Provisions relating to Nomination under the Banking Laws (Amendment) Act, 2025 to come into effect from 1st November 2025:
Effective from November 1, 2025, the Banking Laws (Amendment) Act, 2025 permits up to four nominees for bank accounts, safe custody articles, and lockers, with options for both simultaneous and successive nominations. Simultaneous nominations allow a specific share of entitlement for each of up to four nominees, while successive nominations ensure succession in a priority order. Banks must also now inform customers about the nomination facility when opening an account.
1. Multiple Nominations: Customers may nominate up to four persons, either simultaneously or successively, thereby simplifying claim settlement for depositors and their nominees.
2. Nomination for Deposit Accounts: Depositors may opt for either simultaneous or successive nominations, as per their preference.
3. Nomination for Articles in Safe Custody and Safety Lockers: For such facilities, only successive nominations are permitted.
4. Simultaneous Nomination : Depositors may nominate up to four persons and specify the share or percentage of entitlement for each nominee, ensuring that the total equals 100 percent and enabling transparent distribution amongst all nominees.
5. Successive Nomination : Individuals maintaining deposits, articles in safe custody, or lockers may specify up to four nominees, where the next nominee becomes operative only upon the death of the nominee placed higher, ensuring continuity in settlement and clarity of succession.
Team: Creditmoneyfinance.com