New Delhi: On 23 October 2025, the Ministry of Finance, via the Press Information Bureau, announced that the key nomination-related provisions under the Banking Laws (Amendment) Act, 2025 will come into effect from 1 November 2025.
What is Banking Laws Amendment Act 2025
The amendment Act itself was notified earlier on 15 April 2025 and comprises a total of 19 amendments across five statutes: the Reserve Bank of India Act, 1934, the Banking Regulation Act, 1949, the State Bank of India Act, 1955, and the two Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 & 1980.
Major Changes Under Banking Laws Amendment Act 2025
1. Multiple Nominations: Depositors can now nominate up to four persons for deposit accounts either simultaneously or successively.
For articles kept in safe custody and safety lockers, nomination is allowed successively up to four persons (the next nominee becomes operative only if the earlier nominee pre-deceases).
In the case of simultaneous nominations, the depositor can specify the share or percentage of entitlement that each nominee receives — ensuring that the total equals 100%.
2. Application Scope: These nomination rules apply to deposit accounts, items kept in safe custody, and contents of bank safety lockers.
The deadline for this phase of the amendment is set as 1 November 2025.
3. Underlying Goals: The Act seeks to strengthen governance standards in the banking sector, enhance depositor and investor protection, improve audit quality in public sector banks and promote customer convenience through improved nomination facilities.
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It also calls for uniformity, transparency and efficiency in claim-settlement for nominees of depositors.
Importance of Banking Laws Amendment Act 2025
For depositors in India, the ability to nominate multiple persons (up to four) helps prevent complications and delays in claim settlement in the event of the account-holder’s death or incapacity. It introduces flexibility, clarity and choice — especially for families, joint account holders and those maintaining lockers or safe custody items.
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From the banks’ perspective, having a standardised nomination regime simplifies internal processes, reduces dispute risks and aligns with improved governance frameworks. For the wider financial ecosystem, this boosts confidence, strengthens trust in deposit systems and aligns with the government’s push towards a safer and more transparent banking environment.
What it means for public
If you hold a bank deposit account, bank locker or safe custody article you should look to update your nomination(s) ahead of 1 November 2025.
- Decide whether you want simultaneous nomination(s) (multiple nominees share now) or successive nomination(s) (next nominee only takes effect after predecessor).
- Check with your bank when the Banking Companies (Nomination) Rules, 2025 are published — these will contain the forms and procedures to operationalise the nomination changes.
This is a good time to review beneficiary nominees in your bank relationships and ensure your nomination directions reflect your current wishes and family structure.
What Banks Must Do Under Banking Laws Amendment Act 2025
Banks will need to issue the new nomination forms, update their internal procedures, train staff on the amended rules, and integrate systems for handling up to four nominees per relevant account/facility. They must also communicate clearly to customers the nomination options, document changes properly and ensure that nomination details are reflected accurately in their ledgers and internal records.
