New Banking Rules by RBI to Take Effect from November 1: What You Need to Know

Beginning November 1, 2025, several new provisions under the Banking Laws (Amendment) Act, 2025 will come into effect, marking the next stage of the government’s ongoing banking sector reforms announced earlier this year. These changes aim to enhance nomination flexibility, streamline claim settlements, and strengthen governance frameworks across the banking industry.

According to the Ministry of Finance, the amendments, detailed in Sections 10, 11, 12, and 13 of the Act, pertain to nomination facilities for deposit accounts, safe custody articles, and bank lockers.

Key Changes Effective November 1

Multiple Nominations for Bank Accounts

Bank customers will now have the option to nominate up to four individuals for their accounts. Nominations can be made either:

• Simultaneously, with each nominee receiving a defined share; or
• Successively, where the next nominee becomes eligible only after the previous nominee.

This expanded flexibility is designed to make claim settlements quicker, fairer, and more transparent, minimizing disputes and delays that often arise after the account holder’s death.

Rules for Lockers and Safe Custody Articles

In the case of bank lockers and safe custody articles, only successive nominations will be allowed. This ensures a clear and automatic transfer of rights, if the first nominee is no longer alive, the next nominee in order becomes eligible to claim the contents.

Transparent Distribution of Claims

Customers will be able to allocate specific percentages or shares to each nominee, ensuring the total equals 100%. This mechanism eliminates ambiguity in distribution and helps banks process claims efficiently.

Standardised Nomination Procedures

The government will soon release the Banking Companies (Nomination) Rules, 2025, which will lay down a uniform framework for making, cancelling, or modifying multiple nominations across all banks, ensuring consistent application of the new provisions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.