Banking Made Simpler: Customers Can Nominate Up to Four Beneficiaries from November 1

Image Source: Economic Times

Starting November 1, 2025, bank customers in India can nominate up to four individuals for their accounts, lockers, and safe custody items. This reform, under the Banking Laws (Amendment) Act, 2025, aims to streamline claim settlements, enhance transparency, and offer greater flexibility in asset distribution across the banking system.

Nomination Reform: Banks to Allow Four Nominees Per Account from November 1

In a major step toward improving transparency and efficiency in banking operations, the Ministry of Finance has announced that bank customers can nominate up to four individuals for their accounts starting November 1, 2025. This change is part of the Banking Laws (Amendment) Act, 2025, which introduces 19 amendments across five key banking legislations.

The move is expected to simplify the claim settlement process, reduce disputes among legal heirs, and offer customers more control over their financial legacy.

Key Highlights of the New Nomination Rules:

Up to Four Nominees Allowed

Customers can nominate up to four persons for their deposit accounts, lockers, and safe custody items.

Nominations can be made simultaneously (all nominees share rights) or successively (rights pass in order of priority).

Applicable Across All Banks

The rule applies to all scheduled banks, ensuring uniformity in nomination practices across the sector.

It covers both new and existing accounts, allowing customers to update nominations as needed.

Legal and Operational Clarity

The reform aims to reduce ambiguity in asset distribution after the account holder’s death.

It also helps banks expedite claim settlements, minimizing delays for surviving nominees.

Part of a Larger Legislative Overhaul

The Banking Laws (Amendment) Act, 2025, notified on April 15, includes changes to:

Reserve Bank of India Act, 1934

Banking Regulation Act, 1949

State Bank of India Act, 1955

Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 and 1980

Customer Action Required

Existing account holders are encouraged to review and update their nominations to take advantage of the new flexibility.

Banks will soon roll out digital and branch-level options for making or modifying nominations.

This progressive step reflects India’s commitment to modernizing banking norms and ensuring customer-centric reforms that protect financial interests and simplify legacy planning.

Sources: Telangana Today, Moneycontrol

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