RBI Introduces New Nomination Rules for Bank Accounts Under the Banking Laws (Amendment) Act, 2025
Effective from November 1, 2025, the Reserve Bank of India (RBI) has implemented a significant change in the way customers can nominate individuals for their bank accounts, lockers, and safe-custody services. These new rules come under the Banking Laws (Amendment) Act, 2025, and aim to improve transparency, flexibility, and ease for account holders and their families.
What’s New in the RBI’s Nomination Rules?
Under the new guidelines, banks must clearly inform customers about the availability and importance of the nomination facility at the time of account opening or availing locker/safe-custody services.
Here are the key highlights of the update:
- 🏦 Up to Four Nominees Allowed
Earlier, account holders could nominate only one person per account or locker. Now, the RBI has expanded this limit, allowing up to four nominees. - 📄 Nominee Details Must Be Clearly Recorded
Banks are required to maintain clear and updated nominee details in their systems. Customers can specify the percentage of share for each nominee, ensuring smooth fund transfer in case of unforeseen events. - ⚖️ Transparency & Awareness
All banks are now legally obligated to inform customers about the nomination facility. This ensures customers do not miss out on this important step due to lack of information. - 🔁 Option to Modify or Update Nominees Anytime
Customers can add, delete, or modify their nominees anytime during the account tenure by submitting a written request or through net banking facilities (where applicable). - 🧾 Applies to All Banking Services
The new rule covers:- Deposit Accounts (Savings, Current, Fixed Deposits)
- Lockers
- Safe-Custody Services
Why This Rule Matters
This move by RBI is designed to simplify inheritance and fund transfer processes for families in the unfortunate event of an account holder’s demise.
In the past, lack of a proper nominee often led to legal disputes and long delays. The new framework ensures:
✅ Better financial security for dependents
✅ Reduced paperwork for legal heirs
✅ Transparent communication between banks and customers
What You Should Do as a Bank Customer
If you already hold bank accounts or lockers, here’s what you should do:
- Visit your bank branch or log in to your net banking account.
- Check if your existing accounts have updated nominee details.
- If not, submit a Nomination Form (Form DA1) or use the bank’s online process.
- In case of multiple nominees, clearly specify the percentage of allocation for each.
Being proactive today can prevent unnecessary trouble for your family in the future.
Frequently Asked Questions (FAQs)
1. When will the new nomination rules come into effect?
The new rules are effective from November 1, 2025, as per the RBI’s latest directive.
2. How many nominees can I add to my bank account under the new rule?
You can now nominate up to four people for a single account, locker, or safe-custody service.
3. Can I change or remove a nominee later?
Yes, you can modify or delete nominees anytime by submitting a written request or using online facilities offered by your bank.
4. Is the nomination facility mandatory?
No, it’s not mandatory, but it’s highly recommended for the safety of your funds and for easy settlement.
5. What happens if I don’t add a nominee?
If no nominee is registered, the legal heirs must go through lengthy verification and documentation to claim the funds after the account holder’s death.
Disclaimer
This article is for informational purposes only and should not be treated as legal or financial advice. Customers are advised to check directly with their respective banks or refer to official RBI notifications for detailed guidelines under the Banking Laws (Amendment) Act, 2025.