The Central Government has announced that from November 1, 2025, Sections 10, 11, 12, and 13 of the Banking Laws Act, 2025, will come into effect. These provisions will apply to deposit accounts, lockers, and custody items, with a focus on simplifying and streamlining the nomination and transfer process after a depositor’s demise.
This reform addresses long-standing challenges faced by families of deceased account holders and brings more structure and transparency to banking procedures.
Up to Four Nominees Allowed for Deposits
Under the new rules, customers can nominate up to four individuals for their deposit accounts—either simultaneously or successively.
- In simultaneous nominations, all nominees can receive equal or pre-specified shares of the total assets.
- In successive nominations, if the first nominee passes away, the next nominee automatically inherits the full share.
This change gives depositors greater flexibility in managing how their funds are distributed.
Locker Nominations To Follow Successive Pattern
For lockers and items in safe custody, only successive nominations will be permitted. This ensures a clear succession chain, reducing disputes or overlapping claims among heirs. The measure aims to prevent legal complications and bring uniformity and fairness to how locker contents are transferred.
New Rules Ensure Transparency and Reduced Disputes
The government clarified that the Banking Companies Rules, 2025, will soon provide detailed procedures and forms for making or updating nominations. This update encourages depositors to review their current nominations and align them with their present family and financial situations.
By allowing multiple nominees, the law ensures that assets are distributed fairly, according to a customer’s wishes, minimizing future conflicts and administrative delays.
Broader Banking Reforms in Motion
The Banking Laws Act, 2025, includes 19 amendments to major financial laws such as the RBI Act, Banking Regulation Act, and State Bank of India Act. The November rollout is part of the government’s broader initiative to make India’s banking ecosystem more transparent, efficient, and customer-centric.
