Bank rules changed: Deposit accounts and lockers can have multiple nominees

From 1st November 2025, bank customers will get more flexibility in nominating who will receive their money or valuables in case of their death. This is part of the Banking Laws (Amendment) Act, 2025, aimed at making banking safer, more transparent, and convenient for depositors.

Previously, depositors could nominate only one person for their bank accounts, lockers, or safe custody items. This often caused problems for families with multiple children or dependents, as there was no clear way to divide assets. In many cases, disputes or delays in claim settlement arose, making it difficult for families to access the money quickly.

The new rules allow depositors to nominate up to four people, providing more fle xibility and clarity. This is particularly useful for parents, who can now specify how their money and valuables are to be shared among multiple children or dependents.

What’s new:

• Multiple nominees allowed: Customers can nominate up to four persons for their accounts, lockers, and safe custody items.

• Deposit accounts: Nominees can be chosen simultaneously (at the same time) or successively (one after another).

• Lockers and safe custody items: Only successive nominations are allowed, meaning the next nominee becomes ope rative only after the previous nominee is no longer alive.

• Clear share allocation: For simultaneous nominations, the depositor can specify the percentage of entitlement for each nominee, ensuring the total equals 100% and avoiding confusion or dispute s.

• Smooth claim settlement: The changes ensure a faster and more transparent process when bank claims are made after the depositor’s death.

The government will soon release the Banking Companies (Nomination) Rules, 2025, which will include the detailed procedure and forms for making, cancelling, or updating nominations. This will help all banks implement the provisions in a uniform way.

The amendments are part of broader efforts to strengthen governance in banks, protect depositors and investors, improve audit quality in public sector banks, and make banking more customer-friendly. Customers are encouraged to review and update their nominations as per the new rules to ensure their assets are distributed according to their wishes.

These changes mark a significant step in making the banking system more flexible and responsive to the needs of families, especially those with multiple heirs.