The Finance Ministry has announced the rollout of key provisions under the Banking Laws (Amendment) Act, 2025, effective November 1, 2025, to modernise and simplify India’s banking nomination process. The amendments aim to improve transparency, flexibility, and depositor convenience across bank accounts, safe custody, and locker facilities.
Key Highlights of the Amendment
The 2025 Act, notified on April 15, 2025, introduces 19 amendments across major banking laws, including the RBI Act (1934), Banking Regulation Act (1949), SBI Act (1955), and Banking Companies (Acquisition and Transfer of Undertakings) Acts (1970 & 1980).
One of the most notable reforms is the introduction of multiple nominations for bank deposits. From November 1, customers can nominate up to four individuals, either simultaneously or successively, and specify the percentage share of funds for each nominee—ensuring smoother and more equitable settlements.
For safety lockers and articles in safe custody, the law allows only successive nominations, where the next nominee’s rights activate after the previous nominee’s death—reducing future disputes and ensuring clear succession.
Impact on Customers
The revised framework enhances consumer protection and simplifies post-death claim procedures, supporting the government’s mission to promote financial inclusion and ease of banking operations. Banks will soon update their systems and forms to comply with the new standards.
Exam-Oriented Facts:
- Banking Laws (Amendment) Act, 2025 effective from Nov 1, 2025.
- Up to four nominees now allowed per account.
- Successive nomination only for lockers and safe custody.
- First nomination system introduced in 1980s.
- Public sector banks were nationalised in 1969 and 1980.
