RBI’s new nomination framework reshapes how every individual and proprietorship account holder manages nominees across savings accounts, term deposits, lockers, and safe custody, with a sharp focus on flexibility, speed, and transparency. The standout change is the ability to add up to four nominees, allocate clear percentage shares for deposits, and see “Nomination Registered” with nominee names on passbooks, statements, and deposit receipts without making nomination a precondition to open an account.
The RBI nomination rules for bank customers standardize processes across banks, mandate clear customer communication at onboarding, and require quick acknowledgments for registration, modification, or cancellation of nominations. Customers may either opt for simultaneous nominations with percentage splits totaling 100 percent for deposits or use a successive sequence, while banks must accept opt-outs with a written declaration and proceed with account opening.
RBI Issues New Rules for All Bank Account Holders
| Overview | Key Details |
|---|---|
| Effective Date | Provisions under the Banking Laws (Amendment) Act, 2025 and Banking Companies (Nomination) Rules, 2025 begin in November 2025, with banks implementing the framework through the month. |
| Coverage | Applies to deposit accounts, safe deposit lockers, and articles kept in safe custody across all banking companies for individuals and proprietorships. |
| Number Of Nominees | Up to four nominees permitted for eligible relationships, enabling distribution across family members or priorities. |
| Simultaneous Vs Successive | Deposits can use simultaneous nominations with explicit percentage splits or a successive chain; lockers and safe custody emphasize successive nomination. |
| Bank Obligations | Inform customers at onboarding, process nominations swiftly, show “Nomination Registered” and nominee names on documents, and respect opt‑out choices. |
| Processing Timelines | Acknowledge registration, modification, or cancellation within a short, defined window; clearly explain any rejection in writing within the same timeframe. |
| E‑Nomination | Permitted via secure digital flows with prescribed authentication; alerts and audit trails are required. |
| Opt‑Out | Nomination remains optional; banks must proceed with account opening after recording a written opt‑out or noting refusal to sign. |
RBI’s nomination reforms deliver practical, customer‑first improvements: up to four nominees, clear share splits for deposits, visible “Nomination Registered” status on documents, fast acknowledgments, and the freedom to opt out without penalty. Review every account, deposit, locker, and safe custody item before November 15, 2025, choose the nomination model that fits your family, and lock in e‑nomination with proper authentication and saved acknowledgments. This simple housekeeping step can spare your loved one’s delays and disputes, and it’s now standardized across the banking system for a smoother, more transparent experience.
What’s Changing and Why It Matters
Earlier nomination practices left gaps that delayed claim settlements and created uncertainty for families. The new framework fixes that by allowing multiple nominees, precise percentage allocations for deposits, and mandatory visibility of nomination status on bank documents. For customers, this means faster access for heirs, fewer disputes, and consistent treatment across banks and account types.
How Simultaneous and Successive Nominations Work
- Deposits
- Simultaneous: Name up to four nominees and split shares so they total 100 percent; payouts follow the declared percentages.
- Successive: Set a priority order; the next nominee becomes operative only if the earlier nominee has predeceased or cannot claim.
- Lockers And Safe Custody
- Rules emphasize successive nomination for a clean transfer sequence of physical assets and inventories.
- This reduces ambiguity when multiple parties could claim rights over tangible items.
What You Should Do Now
- Review Existing Nominations
- Check if you have a nominee on each account, deposit, and locker. If your family situation has evolved, consider adding more nominees or switching from a single nominee to simultaneous nomination with shares.
- Decide Clear Percentage Splits For Deposits
- If you opt for simultaneous nominations, set percentages that add up to 100 percent. This is especially helpful for equitable family distribution and to minimize quarrels during difficult times.
- Use E‑Nomination Where Available
- Log in to net banking or mobile banking, submit nominee details with the required authentication, and verify alerts or confirmations are received and stored.
- Keep KYC And Contacts Updated
- Ensure your ID, address, email, and phone number are current so acknowledgments, alerts, and any clarifications reach you without delay.
Bank Responsibilities You Can Expect
- Clear, Early Communication
- Banks must explain nomination benefits at account opening and during locker/safe custody allocation. You should never be pressured; opting out is allowed and must be documented.
- Prompt Turnaround
- Expect acknowledgments within a tight, defined time for every nomination action registration, modification, or cancellation. If a form is incomplete or invalid, the bank has to tell you why in writing within the same period.
- Visible Nomination Status
- Passbooks, statements, and fixed deposit receipts will display “Nomination Registered” along with the nominee name(s). This visibility improves record‑keeping and gives heirs clarity when needed.
Edge Cases and Practical Tips
- If A Nominee Dies Before Claim
- The nomination in favor of that person becomes invalid; ensure you update your nomination promptly to avoid gaps. Where no valid nomination exists, claim settlement falls back on the deceased‑customer claim directions.
- Joint Accounts
- Decide whether simultaneous shares or a successive chain better reflects the family’s needs. Simultaneous shares suit equitable distributions; successive orders suit clear step‑by‑step succession.
- Proprietorship Accounts
- The facility now meaningfully includes proprietorships, improving protection for business deposits and contents in lockers or safe custody as part of risk planning.
- Documentation Discipline
- Keep a secure file with nomination acknowledgments, e‑receipts, updated passbook/statement copies showing the legend, and any written opt‑out declarations.
Security And E‑Nomination
- Authentication
- Banks may support e‑sign, reliable electronic authentication per the IT framework, or secure internet/mobile banking flows with multi‑factor checks.
- After submitting, look for immediate on‑screen confirmation and an email/SMS alert; if not received, contact the bank and request an acknowledgment.
- Corrections And Changes
- If you spot a typo in a nominee’s name, relationship, or share, submit a modification request immediately and track acknowledgment.
- For major life events marriage, divorce, births, deaths schedule a periodic nomination audit and refresh your records.
Illustrative Scenarios
- Single Account Holder With Two Children
- Choose simultaneous nominations and split 50 percent each on all deposits. Use successive nomination for lockers to ensure a clear order if physical contents need handing over.
- Senior Citizen With One Dependent Child
- A single nominee may suffice, but e‑nomination is useful for speed. Print or save the “Nomination Registered” page or statement for the family file.
- Small Business Proprietor
- Extend nomination across current account deposits and locker holdings. Maintain a dated register of nomination acknowledgments for audit and succession continuity.
Common Mistakes to Avoid
- Assuming A Will Replaces Nomination
- A will and a nomination serve different, complementary purposes. Keep both aligned and updated to avoid conflicting instructions.
- Forgetting Term Deposits
- Don’t assume your savings account nomination covers FDs. Register nominee details for each deposit or ensure linked instructions are properly reflected on receipts.
- Not Recording Opt‑Out
- If you don’t want a nominee, ensure the bank records your written declaration or refusal; keep a copy for your records.
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Action Checklist Before November 15, 2025
- Log in to mobile or net banking and check nomination status for every account, deposit, locker, and safe custody item.
- Add up to four nominees for deposits where appropriate, set percentage splits totaling 100 percent, and submit.
- For lockers and safe custody, define a successive order that reflects practical access and responsibility.
- Verify acknowledgments arrive within the stipulated timeframe; save them in your records.
- Visit a branch if e‑nomination isn’t enabled or if documents require in‑person verification.
- Update KYC and contacts to avoid missed alerts or returned communications.
FAQs on RBI Issues New Rules for All Bank Account Holders
Is Nomination Mandatory for Opening a Bank Account
No. You can open or maintain accounts without a nominee. Banks must proceed after recording your written opt‑out or noting refusal to sign.
How Many Nominees Can Be Added And How Are Shares Set
You can add up to four nominees for deposits. If using simultaneous nomination, define percentage shares that total 100 percent; for successive nomination, set a clear order.
Are Locker and Safe Custody Rules the Same as Deposits
Not exactly. For lockers and safe custody, the framework emphasizes successive nomination to ensure a clean, dispute‑free transfer sequence of physical items.
Can Nomination Be Done Online And How Secure Is It
Yes. E‑nomination is allowed where banks provide secure digital journeys with prescribed authentication and alerts. Always save the acknowledgment and verify the legend on your documents.
How Fast Will Banks Process Nomination Requests Or Changes
Banks must acknowledge registration, modification, or cancellation within a short, defined timeline and provide written reasons if they reject a request.
