Managing your bank account is about to get easier. Starting November 1, 2025, banks across India will allow account holders to name up to four nominees. This change is expected to make claim settlements faster, smoother, and more transparent for families.
“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 finance ministry said.
Banking Laws (Amendment) Act, 2025
The new rule comes under the Banking Laws (Amendment) Act, 2025, notified on April 15, 2025. The Act introduces 19 amendments across five key legislations:
- Reserve Bank of India Act, 1934
- Banking Regulation Act, 1949
- State Bank of India Act, 1955
- Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980
The amendments aim to make banking processes more uniform, transparent, and customer-friendly.
What the New Rule Allows?
Bank customers can now name up to four nominees for their accounts. There are two ways to do this:
Simultaneous Nominations
You can assign multiple nominees at once and decide the percentage share for each. The total must add up to 100%.
For example:
- 50% to spouse
- 30% to child
- 20% to sibling
Successive Nominations
If a nominee passes away, the next person in line automatically inherits the entitlement. For lockers and safe deposit items, only successive nominations are allowed. The rights pass automatically to the next nominee if the first nominee is unavailable.
How This Helps Families?
Previously, if you had only one nominee, any issues with that person could delay or complicate claim settlements. Legal disputes or court involvement could hold up access to funds or valuables.
With up to four nominees, the process becomes simpler and faster. Your savings and valuables can reach the people you want without unnecessary delays. This is particularly useful for large families or joint account holders who want fair distribution. It also gives peace of mind knowing your hard-earned money is protected.
Simplifying Estate Planning
Apart from claim settlements, this change could transform personal estate planning in India. Families can now plan the distribution of both funds and valuables in a clear, legally recognized manner.
This reduces conflicts, prevents legal hassles, and ensures financial security for multiple beneficiaries. It also encourages account holders to update their nominations regularly to reflect family changes.
What This Means for Account Holders?
From November 1, 2025, Indian bank customers gain more flexibility, transparency, and control over their accounts. Whether it’s a savings account, fixed deposit, or locker, having up to four nominees ensures your money reaches the right hands efficiently.
It’s a small regulatory change with a big impact—simplifying claim settlements, reducing disputes, and giving families peace of mind.
