Bank Nominee Rules 2025: Big Change Coming for Account Holders — Four Nominees, Clear Share Division
In a major reform aimed at enhancing transparency and fairness in the financial system, the government has announced that bank account holders will soon be able to nominate up to four individuals for their accounts instead of just one. The Finance Ministry said this change, coming into effect nationwide from November 1, 2025, is designed to make the claims settlement process more transparent, equitable, and efficient. The move follows the enactment of the Banking Laws (Amendment) Act, 2025, which was notified on April 15 this year.
Under the new rules, account holders can nominate up to four individuals either simultaneously or sequentially and can allocate specific percentage shares to each nominee, ensuring a total of 100 percent. This will help eliminate potential disputes during claim settlements. For bank lockers and safes, only sequential nominations will be allowed, meaning the next nominee will inherit rights after the previous nominee’s death. The Finance Ministry emphasized that this flexibility will empower depositors and enhance equality and transparency across the banking system.
The Banking Laws (Amendment) Act, 2025, introduces 19 key amendments across major financial laws, including the RBI Act (1934), the Banking Regulation Act (1949), and the State Bank of India Act (1955). Apart from improving customer convenience, the Act strengthens depositor protection, streamlines audit standards for public sector banks, and rationalizes director terms in cooperative banks from 8 to 10 years. The law also revises the threshold for a “significant stake” in banks for the first time since 1968 — raising it from ₹5 lakh to ₹2 crore — bringing India’s banking governance framework in line with modern global standards.
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