If you’ve got a savings or current account, this update directly affects you. Starting November 1, 2025, the government has rolled out a brand-new system that changes how you can nominate people for your bank accounts.
Here’s the big news — you can now add up to four nominees to your account. Even better, you can decide exactly how much share each person gets. For millions of families, this means fewer disputes, faster claim settlements, and greater peace of mind when it matters most.
Bank Account Rule Change 2025
Think about it — for years, many families struggled when a loved one passed away because bank accounts had unclear or missing nominee details. Some heirs didn’t even know how much of the money they were entitled to. The new system fixes that.
The Finance Ministry, in its October 23 statement, confirmed that under the Banking Laws (Amendment) Act, 2025, the revised rules officially took effect on November 1, 2025. The goal is simple: make the nomination process transparent, fair, and efficient.
This change applies to all major banking laws — including:
- The Reserve Bank of India Act, 1934
- The Banking Regulation Act, 1949
- The State Bank of India Act, 1955
- The Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 & 1980
What Exactly Has Changed?
Under the new rule, every bank customer can now:
- Nominate up to 4 people for a single bank account.
- Assign specific shares or percentages to each nominee — totaling 100%.
- Choose nominees either simultaneously or sequentially, depending on personal preference.
For example, if you nominate your spouse, son, daughter, and a sibling, you can divide the balance — say, 40%, 30%, 20%, and 10%. This clarity helps banks release funds smoothly and prevents family disputes later.
What About Bank Lockers and Safes?
There’s a slightly different rule for bank lockers. Only sequential nomination is allowed here — meaning the second nominee will get rights only after the first nominee’s death.
It might sound technical, but the idea is simple: the government wants to make sure ownership passes in an orderly way, avoiding confusion or overlapping claims.
The Bigger Picture: Simplifying the System
This update isn’t just a small tweak — it’s part of a wider reform. The Banking Laws (Amendment) Act, 2025 includes 19 changes across five major financial laws, modernizing India’s banking system for the digital age.
By letting customers assign shares among nominees, banks can now settle claims faster. It also makes things easier for families — especially during emotionally tough times when paperwork is the last thing they want to deal with.
From my experience, many people don’t review their nominee details for years — some never do. But these new rules are a reminder: keeping your nomination updated isn’t just a formality; it’s one of the most important steps to secure your loved ones’ financial future.
Frequently Asked Questions
1. What is the new rule for bank account nominees in 2025?
From November 1, 2025, account holders can nominate up to four people for their bank accounts and assign specific percentages of their balance to each nominee.
2. Does the rule apply to all types of bank accounts?
Yes. The new system applies to savings, current, and fixed deposit accounts in all major banks across India.
3. Can I still change or update my nominees later?
Absolutely. You can add, remove, or modify nominees anytime by submitting an updated nomination form to your bank.