Multiple nominees to be allowed for bank accounts and lockers from November under new banking law

Starting November 1, bank customers will be allowed to nominate multiple individuals for their deposit accounts, safety lockers, and articles kept in safe custody. The Finance Ministry announced that key provisions of the Banking Laws (Amendment) Act, 2025, will come into effect from next month, enhancing transparency and flexibility in claim settlements.

Under the new rules, depositors can nominate up to four persons either simultaneously or successively. They can also specify the share of entitlement for each nominee, ensuring the total allocation equals 100 per cent. For safety lockers and articles in safe custody, only successive nominations will be permitted to ensure a clear order of succession.

The amended law aims to simplify claim procedures for depositors’ families and strengthen customer convenience. It introduces uniformity in nomination rules across all banks and promotes clarity in the distribution of assets. The Banking Companies (Nomination) Rules, 2025, which will outline the detailed procedure and forms for making or cancelling nominations, will be released soon.

Enacted in April 2025, the Banking Laws (Amendment) Act brings 19 amendments across major banking legislations, aiming to improve governance standards, depositor protection, and operational efficiency in India’s banking system.