Banking Laws (Amendment) Act nomination rules take effect 1 November: up to four nominees allowed
The Finance Ministry notified that nomination provisions of the Banking Laws (Amendment) Act, 2025, allowing up to four nominees for bank deposits, safe custody articles and lockers, take effect from 1 November 2025.
Summary
On 23 October 2025, the Finance Ministry announced that Sections 10 to 13 of the Banking Laws (Amendment) Act, 2025, which deal with nomination, will come into force on 1 November 2025. Depositors can name up to four nominees. For deposit accounts they can choose simultaneous nomination, where each nominee gets a stated share adding up to 100%, or successive nomination, where the next nominee acts only if the one above has died. For articles in safe custody and safety lockers, only successive nomination is allowed. The Act was notified on 15 April 2025 and makes 19 amendments across five laws, including the RBI Act, 1934, the Banking Regulation Act, 1949 and the SBI Act, 1955. Some other sections came into force on 1 August 2025.
Key facts
- In force
- 1 Nov 2025 (Sections 10–13)
- Nominees
- Up to 4
- Deposits
- Simultaneous or successive nomination
- Lockers/safe custody
- Only successive nomination
- Act notified
- 15 Apr 2025; 19 amendments across 5 laws
- Earlier provisions
- In force from 1 Aug 2025
Practice MCQs 3 questions
Under the Banking Laws (Amendment) Act, 2025 provisions effective from 1 November 2025, a depositor can nominate up to how many persons?
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Correct answer: C — Four
PIB: customers may nominate up to four persons, either simultaneously or successively.
Under the new nomination rules effective 1 November 2025, which type of nomination is permitted for articles in safe custody and safety lockers?
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Correct answer: B — Only successive nomination
PIB: for articles in safe custody and safety lockers, only successive nominations are permitted; deposit accounts can have either.
Consider the following statements about the Banking Laws (Amendment) Act, 2025: 1. It contains 19 amendments across five legislations, including the Reserve Bank of India Act, 1934. 2. Its nomination provisions came into force on 1 August 2025. Which of the statements given above is/are correct?
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Correct answer: A — 1 only
Only 1 is correct. PIB: the Act has 19 amendments across five laws. Certain other sections came into force on 1 August 2025; the nomination provisions (Sections 10–13) come into force on 1 November 2025.