From November 1, Major Bank Rule Change: Account Holders Can Add Up to Four Nominees

Starting November 1, 2025, bank account holders across India will be able to add up to four nominees to their bank accounts and lockers. This new rule, introduced under the Banking Laws (Amendment) Act, 2025, aims to make the claim settlement process faster, more transparent, and dispute-free. It marks one of the most customer-friendly reforms in recent years, ensuring that financial assets are passed on smoothly to rightful heirs.

What Changes from November 1

Until now, banks allowed customers to designate only one nominee per account or locker. From November 1, that restriction will be lifted, giving customers the flexibility to nominate up to four individuals.

Under the new system, account holders can also define the percentage of share each nominee will receive from the total deposit or locker contents. This proportional allocation will help minimize family disputes after the account holder’s demise and ensure clarity in claim distribution.

Additionally, providing the nominee’s mobile number and email ID has been made mandatory. This will help banks communicate directly with the nominees, making the settlement process more transparent and secure.

How to Add Nominees

Customers will have two options for adding nominees:

Simultaneous Nomination:
All four nominees can be added at once, and their shares in the account or locker can be pre-decided by the account holder.

Sequential Nomination:
Account holders can nominate successors in a specific order. For example, if the first nominee is no longer alive, the rights automatically pass to the second nominee, and so on. This step-by-step mechanism will ensure a smooth transition of ownership without requiring additional legal formalities.

This structure applies not only to bank deposits but also to bank lockers and safe custody services. For lockers, however, the nominations will be strictly sequential — meaning that the second nominee will get access only after the first nominee’s passing, and the process continues in that order.

Benefits of the New Nominee Rule

This major change in the banking system is expected to bring several practical advantages:

• Simplified Claim Settlement: Families will be able to claim deposits or locker contents more quickly and easily after the account holder’s demise.

• Reduced Legal Complications: By clearly defining nominees and their respective shares, the new rule minimizes the chances of disputes or litigation among heirs.

• Increased Transparency: With the inclusion of verified contact details of nominees, banks will maintain better communication during the claim process.

• Enhanced Financial Security: Account holders can now ensure that multiple family members or trusted individuals are covered in their financial planning, providing a more balanced asset distribution.

Background and Implementation

The amendment was officially notified on April 15, 2025, as part of the Banking Laws (Amendment) Act, 2025, which introduced 19 key reforms to modernize the country’s banking framework. The new nominee rule will take effect from November 1, 2025, across all banks in India — both public and private.

This move is expected to improve transparency and efficiency within the banking system while providing customers with greater flexibility and control over their assets.

Impact on Account and Locker Holders

For millions of bank customers, this change will simplify financial succession planning. Whether it’s a savings account, fixed deposit, or locker, customers can now allocate their money or valuables among multiple nominees, ensuring that their assets are managed according to their wishes.

Moreover, by clearly defining each nominee’s share, families will no longer face delays in accessing funds during emergencies. The streamlined system will also reduce the burden on banks handling claim verifications and settlements.

Final Takeaway

The new bank nominee rule effective from November 1 is a significant step toward improving customer convenience and trust in the financial system. By allowing up to four nominees per account or locker, the government has addressed long-standing concerns about inheritance disputes and procedural delays in claim settlements.

For account holders, it’s the right time to review and update their nomination details to align with the new rule. Doing so will not only safeguard their assets but also ensure peace of mind for their families in the future.