Banks To Permit Multiple Nominees For Deposits And Lockers From November 1, 2025

Significant changes under the revised Banking Regulation Act, 1949, will become applicable on November 1, 2025. The reforms focus on making nomination in deposits, lockers, and safe custody articles more flexible. They intend to ease the way funds and valuables are transferred following a depositor's death and reduce conflicts among heirs.

Multiple Nominees for Deposit Accounts

Currently, most banks do not permit more than a single nominee per deposit account. But according to the new regulation, four individuals can be nominated by depositors for their savings, current or fixed deposit accounts. This enables more members of the family or dependents to be made beneficiaries.

There will be two methods of nominating. In a simultaneous nomination, the nominees will all have a chance to receive a proportion of the deposit, depending on the percentage that the depositor wishes. The share must total 100 per cent.

In a series nomination, the nominees are listed in order of preference. The initial nominee is given the money, and in case they pass away, the subsequent one receives the amount. It provides account holders with greater flexibility on how assets are transferred to them.

Locker And Safe Custody Rules

For safety lockers and items kept in safe custody, banks will permit successive nominations only. That is, only one nominee can be entitled to the contents at a time, according to the order specified by the account holder. This avoids confusion when several people are named for precious things deposited in bank premises.

Other Reforms Under The Act

Besides the freedom of nomination, the new regulation also brings other banking standards. It increases the definition of a "substantial interest" in a bank from Rs 5 lakh to Rs 2 crore. This amount had been static for decades.

It also amends the tenure for cooperative bank directors. Previously limited to eight years, it has been stretched to 10 years now, making it equal to the governance standards implemented for other financial firms.

These measures will enhance the transparency of the banking system and improve depositor protection.

Benefits For Customers

The greatest benefit for customers is ease and transparency. Families usually encounter difficulties in accepting claims because nominations are unclear or outdated. Allowing multiple nominees for deposit accounts facilitates the easy transfer of money or valuables without having to go through lengthy legal proceedings.

Depositors need to check their current accounts and update nominations once the new rules are implemented. This will prevent any delay or disputes in their savings and locker belongings reaching the hands of the intended parties.