The Reserve Bank of India (RBI) has, in conjunction with the Ministry of Finance, proclaimed changes in banking regulations under the Banking Laws (Amendment) Act, 2025. These new regulations, which will come into force on November 1, 2025, are created to make the nomination process clearer, claim payments quicker, and provide a greater level of security for depositors in banks.
Up to Four Nominees Allowed
In the past, the only option for a bank account holder was to name one person only for his/her savings accounts, fixed deposits, lockers, or safe custody goods. The new regulation allows customers to choose four individuals for nomination at the same time or one after the other. This new development provides benefits in terms of the distribution of the estate and also family conflicts during the claims process.
Clear Share Allocation Required
Hold the right to specify the rights of each nominee in percentage terms, and the sum must be 100%. This regulation improves the clarity and equality among the heirs when it comes to the dispersal of property. For instance, 50% can go to the spouse, and the two children can receive 25% each. This unambiguousness is an aid to banks in quick processing of claims as well as in elimination of confusion.
Applies to All Banks and Lockers
The latest changes apply to all bank accounts, which are classified as savings, current, fixed deposits, and those having lockers and safe custody items. Irrespective of the bank you choose among SBI, HDFC, ICICI, or any other, these rules are enforced. Banks are in the process of revamping their computer systems so customers can easily add or modify nominees in their accounts.
RBI Nomination Rule Summary
| Feature | Old Rule | New Rule (2025) |
|---|---|---|
| Number of Nominees Allowed | 1 | Up to 4 nominees |
| Share Allocation | Optional | Mandatory (must total 100%) |
| Coverage | Limited | All accounts, lockers, safe custody items |
| Claim Settlement | Manual, slow | Faster, more transparent |
| Effective Date | — | November 1, 2025 |
Final Thoughts
The 2025 change brought in by RBI is a breakthrough in the modernization of banking amenities for all the account holders. The introduction of the multiple nominees system and the imposition of the clear share distribution rule has resulted in the facilitation of the claims process, a reduction in disputes, and an increase in the protection of families. Thus, customers are advised to contact their bank or use online portals to update nominee information before November 1.
