The Reserve Bank of India (RBI) has introduced significant updates to the nomination rules for bank accounts, lockers, and safe custody articles, which are part of the new Banking Companies (Nomination) Rules, 2025, effective from November 1, 2025.
The main changes are aimed at improving transparency, providing more flexibility, and ensuring faster claim settlement for the deceased customers' heirs.
📝 Key Highlights of the New Nomination Rules
1. Multiple Nominees
Deposit Accounts, Lockers, and Safe Custody: You can now nominate up to four individuals. This is a major change from the previous system, which typically allowed only one nominee.
Minor Nominee: If a nominee is a minor, the account holder must appoint an adult to receive the funds on the minor's behalf.
2. Types of Nomination
The rules introduce two flexible options for nominations:
| Nomination Type | Applies to | Details |
| Simultaneous | Deposit Accounts Only | You name up to four nominees at once and assign a specific percentage share to each (must total 100%). |
| Successive | Deposits, Lockers, Safe Custody | You list up to four nominees in a specific order of priority. The next nominee in line becomes eligible only if the one above them is no longer alive. |
3. Nomination is Optional (But Declaration is Mandatory)
Banks Must Offer: Banks are now required to explicitly inform every customer about the nomination facility and explain its benefits (simpler claim process, no legal delays).
Refusal to Nominate: If a customer chooses not to nominate anyone, the bank must obtain a written declaration confirming this decision. No customer can be denied or delayed in opening an account solely for refusing to make a nomination.
4. Transparency and Documentation
Mandatory Record: Banks must record the nomination status on the customer's documents. Your passbook, account statement, or term deposit receipt will now clearly show the legend "Nomination Registered" along with the nominee's name(s).
Fast Processing: Banks are directed to acknowledge and process all nomination requests (registration, cancellation, or variation) within three working days.