Banking Companies (Nomination) Rules, 2025 to Come into Effect from November 1: New e-Nomination Norms for Bank Deposits

Banking Companies (Nomination) Rules, 2025 to Come into Effect from November 1: New e-Nomination Norms for Bank Deposits

New Delhi: Ministry of Finance has notified the Banking Companies (Nomination) Rules, 2025, introducing simplified and modernised provisions for nomination and e-nomination in respect of bank deposits, articles in safe custody, and safety lockers.

These rules, issued via Notification G.S.R. 790(E) dated 27th October 2025, will come into effect from November 1, 2025, replacing the earlier 1985 Nomination Rules.

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The new framework, issued under the Banking Regulation Act, 1949, aims to make the nomination process more flexible, digital, and secure, ensuring easier succession management for depositors.

Key Highlights of the Banking Companies (Nomination) Rules, 2025

• Up to Four Nominees Allowed:
  A depositor, or all joint depositors together, can nominate up to four individuals — either simultaneously (with specific percentage shares) or successively (one after another).
• e-Nomination Facility:
  Banks can now offer digital or electronic nomination facilities through their internet or mobile banking platforms. This requires:
  • Collection of all mandatory details as per the official nomination form.
  • Authentication using electronic signature or digital verification.
  • Two-factor authentication in case of internet or mobile banking.
  • Automatic alerts to depositors whenever a nomination is created or modified.
• Nomination for Minors:
  If the nominee is a minor, the depositor can appoint a guardian to receive the amount or articles on the minor’s behalf.
• Joint Deposits:
  For joint accounts, any cancellation or modification of nomination must be done by all depositors together.
• Acknowledgment by Bank:
  Every nomination or e-nomination must be acknowledged in writing or electronically, and properly recorded in the bank’s core system.
• Nomination Extension:
  A depositor can request to extend an existing nomination to all other accounts in the same bank.
• Nomination Validity:
  Nomination remains valid even after renewal of a deposit.
• Safe Custody & Lockers:
  The same nomination provisions apply mutatis mutandis to articles in safe custody and bank lockers, allowing up to four successive nominees.

Forms and Procedures

The new rules also introduce a common, standardised nomination form applicable for:

• Bank deposits
• Articles in safe custody
• Safety lockers

The form captures depositor details, nominee information, percentage allocation, and guardian details (if applicable), with an acknowledgment section for bank use.

Objective

The 2025 rules align with the government’s Digital India initiative and aim to:

• Simplify compliance for banks and customers,
• Enable paperless and secure e-nominations,
• Reduce disputes and delays in claim settlements after the depositor’s death, and
• Provide a transparent and verifiable record of nominations.

(Source: Ministry of Finance – Notification No. G.S.R. 790(E), dated 27 October 2025)