The implementation of these provisions will give depositors the flexibility to make nominations as per their preference.
New Bank Rules: The Finance Ministry has announced that the key provisions relating to nomination under the Banking Laws (Amendment) Act, 2025, will come into effect from November 1, 2025. The provisions relate to nomination facilities in respect of deposit accounts, articles kept in safe custody, and the contents of safety lockers maintained with banks.
The Act, which was notified on 15th April 2025, contains a total of 19 amendments across five legislations — the 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.
Key features of these provisions
Multiple Nominations: Customers may nominate up to four persons, either simultaneously or successively, thereby simplifying claim settlement for depositors and their nominees.
Nomination for Deposit Accounts: Depositors may opt for either simultaneous or successive nominations, as per their preference.
Nomination for Articles in Safe Custody and Safety Lockers: For such facilities, only successive nominations are permitted.
Simultaneous Nomination: Depositors may nominate up to four persons and specify the share or percentage of entitlement for each nominee, ensuring that the total equals 100 per cent and enabling transparent distribution amongst all nominees.
Successive Nomination: Individuals maintaining deposits, articles in safe custody, or lockers may 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.
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