Team SKM,
Starting November 1, 2025, the amended provisions of the Banking Laws (Amendment) Act, 2025 will come into effect, bringing landmark reforms in how banking nominations are managed across India. These changes give depositors far greater control over how their banking assets – accounts, lockers, and safe custody items – are handled in the event of their death or incapacity.
The new framework focuses on simplifying procedures, enhancing customer autonomy, and integrating nominee management with digital banking systems.
Multiple Nominees for Deposit Accounts
A key feature of the new rules is the ability for customers to appoint up to four nominees for their deposit accounts. This applies to all account types – savings, current, fixed, recurring, and joint accounts.
Customers can now choose between two types of nominations:
- Simultaneous nomination – The depositor assigns specific shares to multiple nominees, ensuring clarity in distribution.
- Successive nomination – If the primary nominee is unavailable, the rights automatically transfer to the next nominee, providing seamless succession.
Each nominee’s details – including full name, relationship to the depositor, and KYC documents (Aadhaar, PAN, or equivalent proof) – must be provided. Banks are expected to update account opening forms and digital systems to accommodate the new multi-nomination structure.
Transparent Locker and Safe Custody Access
Under the revised law, safe deposit locker and safe custody services now also come under the improved nomination framework. Earlier, delays and disputes were common in granting locker access to nominees after the account holder’s death. The new rules mandate that:
- Nominees must be granted preliminary locker access within 48 hours of submitting the death certificate and necessary documents.
- Banks must conduct an inventory in the presence of the nominee and issue a signed record of contents.
- Legal heirs continue to have the right to pursue ownership claims, but initial operational control rests with the nominee.
These steps significantly enhance transparency, speed, and fairness in locker claim processing.
Digital Nomination Management and Periodic Reminders
To further streamline the nomination process, the RBI has directed banks to enable online nomination facilities through internet banking and mobile apps. Customers can now update, modify, or cancel nominations digitally without visiting branches.
Additionally, banks will:
- Send automated nomination review reminders every three years.
- Issue digital acknowledgment receipts confirming every nomination update.
- Integrate nominee data directly into claim settlement workflows.
This ensures that banking institutions remain technologically aligned and customer centric.
A Step Toward Simplified Succession Planning
This amendment marks a significant shift in India’s banking landscape – transforming rigid legacy processes into flexible, transparent, and digitally enabled frameworks. Depositors will now have more control over how their assets are managed after death, reducing dependence on legal intermediaries and family disputes.
For financial planners, lawyers, and Chartered Accountants, the reform offers an opportunity to educate clients about aligning bank nominations with estate and will planning. With these changes taking effect on November 1, 2025, customers are advised to review their current nominations and ensure information accuracy to fully benefit from the new system.