Major Changes in Bank Nomination Rules from November 1, 2025: What Central Government Employees Need to Know

Important news for all central government employees and bank account holders!
The Government of India has announced that key provisions of the Banking Laws (Amendment) Act, 2025 relating to nomination facilities will come into effect from November 1, 2025. These changes will significantly impact how you can nominate beneficiaries for your bank accounts, fixed deposits, and safety lockers.

🏦 What is the Banking Laws (Amendment) Act, 2025?

The Banking Laws (Amendment) Act, 2025 was notified on April 15, 2025, and contains a total of 19 amendments across five major banking legislations:

Reserve Bank of India Act, 1934
Banking Regulation Act, 1949
State Bank of India Act, 1955
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980

The Act is being implemented in phases. Sections 3, 4, 5, 15, 16, 17, 18, and 19 came into force on August 1, 2025, while Sections 10, 11, 12, and 13 — dealing with nomination facilities — will become effective from November 1, 2025.

🔑 Key Changes Coming from November 1, 2025

The new provisions will apply to nomination facilities for:

Bank deposit accounts (savings, current, and fixed deposits)
Articles kept in safe custody
Contents of safety lockers maintained with banks

✅ Multiple Nominations: Up to Four Nominees Allowed

The biggest change is that customers can now nominate up to four persons instead of just one. This can be done simultaneously or successively, making claim settlement much simpler for depositors and their families.

🧾 Two Types of Nomination Options

1. Simultaneous Nomination (For Deposit Accounts Only)

Under simultaneous nomination:

You can nominate up to four persons at the same time.
You can specify the share or percentage of entitlement for each nominee.
The total share must equal 100%.
This ensures transparent distribution among all nominees.

Example: If you have ₹10 lakh in your savings account, you can nominate your spouse for 40%, your daughter for 30%, and your son for 30%.

2. Successive Nomination (For All Facilities)

Under successive nomination:

You can specify up to four nominees in order of priority.
The next nominee becomes operative only upon the death of the nominee placed higher.
This ensures continuity and clarity in succession.

Example: You can nominate your spouse as the first nominee, your elder child as the second, your younger child as the third, and your sibling as the fourth. If your spouse is alive, they will receive the funds. If not, the second nominee becomes eligible, and so on.

🗝️ Special Rules for Safety Lockers and Safe Custody

For articles kept in safe custody and safety lockers, only successive nominations are permitted. This means you can nominate up to four persons, but they will be considered in priority order, not simultaneously.

🌟 Benefits of These New Provisions

Greater Flexibility: You can now distribute assets among multiple family members as per your preference.
Reduced Unclaimed Deposits: As of June 30, 2025, unclaimed deposits in public sector banks stood at ₹58,330.26 crore. The new rules aim to reduce such cases.
Simplified Claim Settlement: Multiple nominations make it easier for families to claim funds, reducing legal disputes and paperwork.
Uniformity Across Banks: These rules will apply to all banks, ensuring consistency and transparency.

📜 What Will Happen Next?

The Government will soon publish the Banking Companies (Nomination) Rules, 2025, which will detail:

The procedure for making nominations
Prescribed forms for nomination
The process for cancelling or changing nominations
How to specify multiple nominations

These rules will ensure uniform implementation across all banks in India.

🎯 Overall Objectives of the Banking Laws (Amendment) Act, 2025

Strengthen governance standards in the banking sector
Ensure uniform reporting to the RBI
Enhance depositor and investor protection
Improve audit quality in public sector banks
Promote customer convenience
Rationalize the tenure of directors in co-operative banks

🧮 Action Points for Central Government Employees

If you are a Central Government employee maintaining multiple savings schemes or deposits:

Review Your Current Nominations: Check existing nominations on all accounts, deposits, and lockers.
Wait for Official Forms: Banks will provide new nomination forms starting November 1, 2025.
Plan Your Nominations: Decide how to distribute your assets (simultaneous or successive).
Update Your Records: Visit your bank from November 1, 2025, to update your nominations properly.

⚠️ Important Reminders

New rules effective November 1, 2025
Up to four nominees allowed
For deposit accounts: both simultaneous and successive nominations permitted
For lockers and safe custody: only successive nominations allowed
In simultaneous nominations, the total share must equal 100%
Banks will soon provide the official forms and procedures

🏁 Conclusion

The Banking Laws (Amendment) Act, 2025 introduces welcome reforms offering greater flexibility and protection to bank account holders. For central government employees — who often maintain multiple deposits and savings accounts — these provisions will simplify estate planning and ensure that your hard-earned savings reach your loved ones smoothly.

Stay tuned to your bank’s official communications for the new nomination forms and procedures.
Update your nominations after November 1, 2025 to take full advantage of these beneficial provisions.

Source: Press Information Bureau (PIB), Government of India

📄 Read / Download Official PIB Release

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Major Changes in Bank Nomination Rules from November 1, 2025: What Central Government Employees Need to Know