RBI Issues New Norms for Nomination Facilities in Bank Accounts and Lockers from November 1

The Reserve Bank of India (RBI) has released updated norms governing nomination facilities for bank accounts, safe deposit lockers, and articles held in safe custody. The new guidelines, titled “Nomination Facility in Deposit Accounts, Safe Deposit Lockers and Articles kept in Safe Custody with Banks) Directions, 2025”, will come into effect from November 1, 2025.

Key Provisions for Banks and Customers

All banks, including cooperative and rural banks, must now provide a nomination option for customers at the time of opening an account or availing locker and custody services. Customers can also choose to opt out through a written declaration, and banks cannot delay account opening on this basis.

Banks are required to acknowledge nomination forms within three working days and mark “Nomination Registered” on passbooks or deposit receipts. Additionally, they must maintain nominee details in account records to enhance transparency and customer confidence.

Focus on Customer Awareness and Compliance

The RBI has instructed banks to organise awareness campaigns to educate customers about the importance of nomination. Systems must also be established to allow easy registration, cancellation, or modification of nominations with timely written acknowledgments.

If a nomination request is rejected, banks must inform the customer in writing within three working days, citing reasons. In cases involving multiple nominations, if a nominee passes away before claiming the deposit, the nomination for that individual will lapse.

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Conclusion

These new directions form part of the RBI’s broader efforts to simplify post-death claim settlements and improve customer convenience. Effective nominations will help banks settle claims smoothly while ensuring that rightful nominees can access funds or assets without unnecessary delays.

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.