5 new bank deposit, safe custody and locker nomination rules from November 1: All you need to know

The Central Government has notified that the provisions contained in Sections 10, 11, 12, and 13 of the Banking Laws (Amendment) Act, 2025 will come into effect from November 1, 2025. These sections include key provisions related to nomination under the Act.

The Government had notified the Banking Laws (Amendment) Act, 2025 on April 15, 2025. The notification contained 19 amendments across five laws: Reserve Bank of India Act, 1934, Banking Regulation Act, 1949, State Bank of India Act, 1955 and Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and 1980.

The notification had said that the provisions of the Banking Laws (Amendment) Act, 2025 “shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint” and different dates may be appointed for different provisions of the Act.

The Central Government has now notified that the provisions contained in Sections 10, 11, 12 and 13 of the Banking Laws (Amendment) Act, 2025 will come into force with effect from November 1, 2025.

5 key changes

The provisions being brought into effect from November 1 relate to nomination facilities in respect of deposit accounts, articles kept in safe custody, and the contents of safety lockers maintained with banks.

The following are five key provisions that bank customers need to know:

• Simultaneous nomination: Depositors will be allowed to nominate up to four persons and specify the share or percentage of entitlement for each nominee. This will ensure that the total equals 100 percent, enabling transparent distribution amongst all nominees.

• Successive nomination: Individuals maintaining deposits, articles in safe custody, or lockers will be allowed to specify up to four nominees, where the next nominee becomes operative only upon the death of the nominee placed higher, ensuring continuity in settlement and clarity of succession.

• Multiple nominations: Bank customers will be able to nominate up to four persons, either simultaneously or successively. This will help simplify claim settlement for depositors and their nominees.

• Nomination for deposit accounts: Bank depositors will be allowed to opt for either simultaneous or successive nominations, based on their choice.

• Nomination for articles in safe custody and safety lockers: For such facilities, only successive nominations will be allowed.

How will these changes benefit you?

"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 Ministry of Finance said in a release.

"The Banking Laws (Amendment) Act, 2025 aims...to strengthen governance standards in the banking sector, ensure uniformity in reporting by banks to the Reserve Bank of India, enhance depositor and investor protection, improve audit quality in public sector banks, and promote customer convenience through improved nomination facilities," it added.

The Ministry will soon publish the Banking Companies (Nomination) Rules, 2025 to operationalise these provisions uniformly across all banks. These rules will have details of the procedure and prescribed forms for making, cancelling, or specifying multiple nominations.