The Government of India has announced that the key provisions relating to nomination under the Banking Laws (Amendment) Act, 2025 will officially come into force on 1st November 2025. These provisions, notified under Sections 10, 11, 12, and 13 of the Act, will significantly enhance customer convenience and improve the process of claim settlement for depositors and nominees in the Indian banking system.
The Banking Laws (Amendment) Act, 2025 was originally notified on 15th April 2025 through a Gazette Notification. It comprises 19 amendments spread across five key legislations — the Reserve Bank of India Act, 1934, the Banking Regulation Act, 1949, the State Bank of India Act, 1955, and the Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 and 1980.
According to the Act, its provisions “shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.” The government has accordingly specified 1st November 2025 as the commencement date for the provisions related to nomination facilities.
Enhanced Nomination Framework for Depositors and Customers
The new provisions simplify and modernize the nomination process across deposit accounts, safety lockers, and articles kept in safe custody with banks. The aim is to improve transparency, flexibility, and efficiency in claim settlements while offering depositors greater control over their nominations.
KEY FEATURES OF THE NOMINATION PROVISIONS
Multiple Nominations: Customers will now be able to nominate up to four individuals, either simultaneously or successively, ensuring greater clarity and ease during claim settlement.
Nomination for Deposit Accounts: Depositors can choose between simultaneous or successive nominations depending on their preferences, offering complete flexibility.
Nomination for Safe Custody and Lockers: For articles in safe custody or bank lockers, only successive nominations are permitted, ensuring clear succession in the event of the death of a nominee.
Simultaneous Nomination: Depositors may allocate specific shares or percentages (totalling 100%) among up to four nominees. This ensures transparent and equitable distribution of claims.
Successive Nomination: This provision allows for a hierarchical nomination order, where the next nominee’s right becomes active only upon the death of the preceding nominee — ensuring clarity, continuity, and orderly succession.
Implementation and Supporting Rules
The government will soon notify the Banking Companies (Nomination) Rules, 2025, which will prescribe detailed procedures and standard forms for making, cancelling, or updating multiple nominations. These rules will ensure uniform implementation of the nomination framework across all banks, enhancing depositor convenience and regulatory consistency.
Earlier, through Gazette Notification S.O. 3494(E) dated 29th July 2025, the government had brought into force Sections 3, 4, 5, 15, 16, 17, 18, 19, and 20 of the same Act effective 1st August 2025, covering governance and regulatory reforms in the banking sector.
Objective and Broader Impact
The Banking Laws (Amendment) Act, 2025 seeks to strengthen governance standards, enhance depositor and investor protection, and ensure uniformity in reporting to the Reserve Bank of India. It also aims to improve audit quality in public sector banks, promote transparency, and streamline customer service mechanisms.
With the rollout of the new nomination provisions from 1st November 2025, customers will benefit from simplified nomination procedures, faster claim settlements, and a more secure and transparent banking experience, for more details CLICK HERE
