There’s great news for bank customers! If you’ve only added one nominee to your bank account, you’ll now have the opportunity to nominate up to four. The government is implementing new rules regarding nominees in bank accounts, effective November 1, 2025. This change will not only provide customers with greater flexibility, but will also make claim settlement easier and more transparent in case of an emergency.
The Finance Ministry announced on Thursday that key provisions of the Banking Laws (Amendment) Act, 2025, will come into effect on November 1. The Act includes new provisions related to nominees. Bank customers can now choose up to four nominees for their accounts, lockers, or safekeeping articles.
What is the new rule?
According to the new provision, a customer can nominate up to four people for their bank account, either simultaneously or sequentially. For example, if a customer has selected four nominees and the first nominee is no longer alive, the second nominee automatically becomes entitled. Customers can also determine the percentage share among the four nominees, such as 40%, 30%, 20%, and 10%, so that the total total is 100% and there is no possibility of any future dispute.
Also applicable on safe deposit lockers and articles
The ministry stated that only sequential nomination will be permitted for safe custody and locker items. This means that the next nominee will inherit the rights only after the death of one nominee. The government states that this change aims to bring uniformity, transparency, and speed up claim settlement in the banking system. This will also allow customers to choose their preferred successor for their deposits. According to the Finance Ministry, the implementation of these provisions will make the nomination process in banks more transparent and effective. This will provide depositors with both clarity and security in the division of their assets.
