Key Nomination Provisions under Banking Laws (Amendment) Act, 2025 to Take Effect from 1st November

New Delhi: The Central Government has announced that the key provisions relating to nomination under the Banking Laws (Amendment) Act, 2025 will come into effect from 1st November 2025. The move is aimed at offering greater flexibility, transparency, and efficiency in claim settlements for bank depositors across the country.

The Banking Laws (Amendment) Act, 2025, notified earlier on 15th April 2025, introduced 19 amendments across five legislations, including the Reserve Bank of India Act, 1934, Banking Regulation Act, 1949, State Bank of India Act, 1955, and the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980. As per the latest notification, Sections 10, 11, 12, and 13 of the Act, dealing with nomination facilities, will come into force from November 1.

Under the new framework, depositors can nominate up to four persons, either simultaneously or successively. This provision simplifies the process of claim settlement for families and ensures greater clarity and fairness in the distribution of entitlements. For deposit accounts, customers may choose between simultaneous or successive nominations, while for articles kept in safe custody or safety lockers, only successive nominations will be allowed.

In the case of simultaneous nominations, depositors can assign specific shares or percentages of entitlement to each nominee, ensuring the total equals 100 per cent. For successive nominations, the entitlement automatically passes to the next nominee upon the death of the one placed higher, ensuring continuity and smooth claim processing.

The upcoming Banking Companies (Nomination) Rules, 2025 will soon be published to lay down the detailed procedures and forms for making, cancelling, or modifying nominations. These rules will ensure uniform application of the new provisions across all banks in India.

The broader Banking Laws (Amendment) Act, 2025 seeks to strengthen governance in the banking sector, improve audit quality in public sector banks, enhance depositor and investor protection, and promote customer convenience through modernised nomination facilities. Earlier, on 1st August 2025, several other provisions of the Act related to governance and reporting standards were also brought into force.

The reforms reflect the government’s continuing efforts to build a transparent, efficient, and depositor-friendly banking ecosystem in India.