Bank Rules change: account nominee and lockers rules change from November

Bank Rules change: The main bank rule change regarding account nominees and lockers that will come into effect from November 1, 2025, is the allowance for multiple nominations. This change is part of the implementation of key provisions under the Banking Laws (Amendment) Act, 2025.

These bank rules change from November:

1. Multiple Nominees:

Bank customers can now nominate up to four individuals for their deposit accounts (Savings, Current, Fixed Deposits) and for articles in safe custody/safety lockers.

2. Nomination Options for Deposit Accounts:

For deposit accounts, customers have a choice between two types of nomination:

Simultaneous Nomination: You can name up to four nominees and specify the percentage share of the deposit that each will receive. The total share must equal 100%. This allows for clear, simultaneous distribution.

Successive Nomination: You can list up to four nominees in a priority order. The next nominee in the sequence only becomes entitled to the deposit upon the death of the nominee placed higher on the list.

3. Nomination for Lockers and Safe Custody Items:

For safety lockers and articles kept in safe custody, only Successive Nomination is permitted. This ensures an orderly transfer of physical assets, as the next nominee becomes operative only upon the death of the one listed before them.

These changes are aimed at giving depositors more flexibility, ensuring uniformity and transparency, and significantly simplifying and speeding up the claim settlement process for nominees after the depositor’s death.

The Finance Ministry is expected to issue the Banking Companies (Nomination) Rules, 2025, soon to provide the exact forms and procedures for implementing these new rules across all banks.

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