Starting November 1, 2025, several key provisions of the Banking Laws (Amendment) Act, 2025 will come into force, ushering in the next phase of India’s banking sector reforms. Announced earlier this year, the amendments are designed to improve transparency, customer convenience, and governance across the financial ecosystem.
According to the Ministry of Finance, the new rules—outlined in Sections 10 to 13 of the Act—cover nomination facilities for deposit accounts, safe custody articles, and bank lockers, bringing more flexibility and clarity to how customer assets are handled.
Major Changes Coming into Effect from November 1, 2025
- Multiple Nominations for Bank Accounts
Bank account holders can now nominate up to four individuals for their accounts. Nominations may be made in two ways:
- Simultaneous nominations, where each nominee receives a specified share; or
- Successive nominations, where the next nominee becomes eligible only if the previous nominee is no longer alive.
This change aims to make claim settlements faster and more transparent, reducing legal disputes and delays that often follow the account holder’s death.
- Rules for Lockers and Safe Custody Articles
For bank lockers and safe custody items, only successive nominations will be permitted. This ensures that rights to access locker contents automatically pass to the next nominee in line, ensuring smooth and dispute-free transfers.
- Clear Distribution of Claims
Customers will now be able to assign specific percentages or shares to each nominee, provided the total adds up to 100%. This mechanism helps avoid ambiguity and allows banks to settle claims more efficiently and fairly.
- Standardised Nomination Framework
The government will soon notify the Banking Companies (Nomination) Rules, 2025, which will introduce a uniform system for making, modifying, or cancelling multiple nominations across all banks. This move will ensure consistency in implementation and customer experience nationwide.
Summary:
Effective November 1, 2025, the RBI’s new banking rules under the Banking Laws (Amendment) Act will grant customers more control over their bank accounts and locker nominations. The reforms allow multiple nominees, clearer claim distributions, and standardized procedures across banks—enhancing efficiency, transparency, and customer protection in India’s financial system.
Disclaimer:
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