Nomination Provisions of Banking Laws (Amendment) Act, 2025

The key provisions relating to nominations under the Banking Laws (Amendment) Act, 2025 will come into effect from 1st November 2025, giving depositors greater flexibility and ensuring uniformity, transparency, and efficiency in claim settlement across the banking system.

Key Points

Effective Date: Sections 10, 11, 12, and 13 of the Banking Laws (Amendment) Act, 2025 will come into force on 1st November 2025 as notified by the Central Government.
Scope of Provisions: These sections relate to nomination facilities for deposit accounts, articles kept in safe custody, and contents of safety lockers maintained with banks.
Multiple Nominations Allowed: Customers may nominate up to four persons, either simultaneously or successively, simplifying claim settlement and providing clarity for depositors and nominees.
Nomination for Deposit Accounts: Depositors may opt for either simultaneous or successive nominations, allowing flexibility in specifying beneficiaries.
Nomination for Articles in Safe Custody and Lockers: Only successive nominations are permitted for such facilities to ensure orderly succession.
Simultaneous Nomination: Depositors can specify up to four nominees along with their respective share or percentage of entitlement, ensuring the total equals 100% for transparent distribution.