Banking Laws Revamp: Nominate Up to Four People on Your Account Starting November 1
From November 1, up to four nominees allowed on bank accounts under new law.
Bank customers in India will gain the flexibility to nominate up to four individuals for their accounts, as per the Banking Laws (Amendment) Act, 2025, announced by the Finance Ministry on October 23, 2025. This landmark provision aims to enhance uniformity, transparency, and efficiency in claim settlements across the banking system. Customers can opt for either simultaneous or successive nominations, specifying the share or percentage for each nominee to ensure a total of 100 percent, simplifying the process for depositors and their heirs.
The amendments, notified on April 15, 2025, encompass 19 changes across key legislations, including the Reserve Bank of India Act, 1934, and the Banking Regulation Act, 1949. For articles in safe custody and safety lockers, only successive nominations are permitted, ensuring clarity in succession upon the death of a nominee. The forthcoming Banking Companies (Nomination) Rules, 2025, will detail procedures for making, canceling, or specifying multiple nominations, ensuring consistent implementation across all banks.
These reforms are part of a broader effort to strengthen banking governance, enhance depositor protection, and improve audit quality in public sector banks. The Act also aligns public sector banks with corporate practices by enabling the transfer of unclaimed shares and dividends to the Investor Education and Protection Fund.
Additionally, it raises the 'substantial interest' threshold from Rs 5 lakh to Rs 2 crore and extends cooperative bank directors' tenure to 10 years, in line with the 97th Constitutional Amendment. These figures underscore the need for public awareness amid ongoing banking reforms, as citizens navigate financial concerns this festive season.
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