The Reserve Bank of India (RBI) has introduced new and simplified nomination rules for bank accounts, lockers, and safe custody articles, effective from November 1, 2025.
The primary goal is to ensure a smooth and hassle-free transfer of funds to the nominee upon the death of the account holder, significantly reducing legal disputes and delays.
🔑 Key Changes in RBI Nomination Rules
| Feature | Old Rule (Generally) | New RBI Rules (Effective Nov 1, 2025) |
| Number of Nominees | Usually one (1) | Up to four (4) for deposits, lockers, and safe custody. |
| Type of Nomination | Simple nomination | 1. Simultaneous: Nominate up to 4 people at once, specifying the percentage share for each (only for deposits). 2. Successive: List nominees in a specific order of priority (for deposits, lockers, and safe custody). |
| Claim Settlement Time | Varied, often lengthy | Banks are directed to settle claims within 15 calendar days of receiving all required documents. |
| Mandatory Offer | Banks offered the facility | Banks must explicitly inform customers about the nomination facility and its benefits when opening an account. |
| Nomination Status | Not always visible on documents | Banks must record the nomination status (e.g., "Nomination Registered") and the nominee's name on passbooks and statements. |
| Processing Time | Varied | Banks must register, cancel, or modify a nomination request and provide acknowledgement within 3 working days. |
✅ How This Ensures Easy & Quick Payout to the Nominee
The new rules simplify the process and minimize hassles by:
Reducing Disputes: Allowing customers to specify percentage shares for multiple nominees eliminates ambiguity and potential legal quarrels among legal heirs regarding the distribution of funds.
Clear Succession: Successive nomination for lockers ensures that the right to access the locker automatically passes to the next person on the list if the preceding nominee passes away.
Transparency: Mandating that the nomination status and name be printed on account documents like passbooks ensures that the nominee is immediately aware of their status and the bank has a clear record.
Enforced Speed: The strict 15-day time limit for claim settlement forces banks to expedite the process, ensuring funds reach the nominee quickly.
Even if a customer chooses not to nominate (which is still an option), the bank must open the account without imposing restrictions, but a written declaration to that effect must be taken and recorded.