SRINAGAR: Beginning next month, bank account holders across India will be able to nominate up to four persons for their accounts, a move aimed at streamlining and simplifying the process of claim settlement across the banking system, according to reports appearing in the media citing a Finance Ministry statement.
The new provisions, notified under the Banking Laws (Amendment) Act, 2025, will come into effect from November 1, 2025, marking a significant reform in the country’s banking framework. The Act, which was notified on April 15 this year, contains 19 amendments across five key legislations — the Reserve Bank of India Act, 1934, Banking Regulation Act, 1949, State Bank of India Act, 1955, and the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980.
According to the Finance Ministry, the revised norms will allow customers to nominate up to four individuals either simultaneously or successively, giving depositors greater flexibility and clarity in managing their financial legacies. Earlier, a bank account could have only one nominee.
The official release said depositors may specify the share or percentage of entitlement for each nominee, provided that the total share equals 100 per cent. This, the ministry said, will ensure transparent and equitable distribution of funds among multiple nominees in the event of the depositor’s death.
In addition to bank deposits, the new framework extends to articles in safe custody and safety lockers. However, in such cases, only successive nominations will be permitted — meaning that the next nominee’s right becomes operative only upon the death of the nominee placed higher in order.
“The implementation of these provisions will give depositors the flexibility to make nominations as per their preference, while ensuring uniformity, transparency, and efficiency in claim settlement across the banking system,” the statement added.
Banking industry experts quoted in the media said the change would help avoid disputes in succession and bring uniformity in how banks handle claims made by legal heirs or nominees. The move is expected to particularly benefit joint account holders and families where multiple dependents are involved.
The new rules, coming into force on November 1, are part of the government’s broader effort to modernise financial laws and align them with current banking practices, ensuring smoother service delivery and enhanced customer protection.
