New Banking Nomination Rules to Take Effect from November 1, 2025

New Banking Nomination Rules to Take Effect from November 1, 2025

The Ministry of Finance has announced new guidelines under the Banking Laws (Amendment) Act, 2025. These new rules aim to give depositors more flexibility and control when it comes to nominating beneficiaries for their bank deposit accounts, lockers, and assets kept in safe custody. The updated provisions will come into effect from November 1, 2025.

Starting November 1, 2025, new rules will come into effect about how people can nominate someone for their bank accounts, safe custody items, and locker contents. These updated regulations explain what happens to these assets if the account holder or locker owner passes away.

The Ministry of Finance said, “The Central Government has notified that the provisions contained in Sections 10, 11, 12 and 13 of the Banking Laws (Amendment) Act, 2025 will come into force with effect from 1st November 2025.” Finmin further stated, “The Banking Laws (Amendment) Act, 2025 was notified on 15th April 2025. It contains a total of 19 amendments across five legislations: the Reserve Bank of India Act, 1934; the Banking Regulation Act, 1949; the State Bank of India Act, 1955 and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and 1980.”

“The Banking Laws (Amendment) Act, 2025 aims, inter alia, to strengthen governance standards in the banking sector, ensure uniformity in reporting by banks to the Reserve Bank of India, enhance depositor and investor protection, improve audit quality in public sector banks, and promote customer convenience through improved nomination facilities. The Act also provides for rationalisation of the tenure of directors, other than the Chairman and whole-time directors, in co-operative banks,” the Ministry of Finance added.