If you have a bank account, or even a locker or safe custody, this update from the Reserve Bank of India (RBI) is important for you.
RBI has made major changes to the nomination rules, which will take effect from November 1, 2025.
These new rules will apply to all banks in India — public, private, rural, and cooperative — and will be mandatory for everyone.
The aim of these changes is to simplify the nomination process and make it more transparent for customers who hold bank accounts, lockers, or safe custody items.
Key Changes in Nomination Rules
Under the new rules, every bank must provide nomination facilities to its customers.
If a customer chooses not to make a nomination, they can state this in writing, and the bank cannot refuse to open an account or give a locker for that reason.
Banks will now have to:
Acknowledge the receipt of the nomination form within three working days.
Clearly mention “Nomination Registered” on the passbook or term deposit receipt.
Record the nominee’s name in their official records to ensure full transparency.
Customers will also be able to add, change, or cancel nominations anytime. For every change, the bank must provide written confirmation.
If a bank rejects a nomination, it must explain the reason in writing within three days.
Special Provisions and Customer Benefits
According to the new guidelines, if there are multiple nominees in an account and one nominee dies before receiving the funds, that particular nomination will lapse automatically.
These rules align with RBI’s existing provisions, which require banks to settle claims of deceased customers within 15 days.
If a valid nomination or survivorship clause exists, the bank can transfer the funds directly to the nominee or legal heir after the account holder’s death.
Overall, these new rules will:
Strengthen customer rights
Enhance transparency in banking operations
Make the nomination process simpler and more secure for all account and locker holders
