Centre Notifies Enforcement Date for Key Provisions of the Banking Laws (Amendment) Act, 2025 [Read Notification]

The Ministry of Finance (Department of Financial Services) has issued Notification No. S.O. 4789(E) dated October 22, 2025, announcing that certain provisions of the Banking Laws (Amendment) Act, 2025 (Act No. 16 of 2025) will come into effect from November 1, 2025.

The notification brings into force Sections 10, 11, 12, and 13 of the Act. These sections amend key provisions of the Banking Regulation Act, 1949, introducing significant reforms in the rules related to nomination for bank deposits, accounts, and lockers.

Sections Coming into Effect on November 1, 2025

From the full text of the Banking Laws (Amendment) Act, 2025 (as published in the Gazette of India on April 15, 2025, No. 16 of 2025), the following are the details of the sections notified for commencement:

Section 10 — Amendment of Section 45ZA of the Banking Regulation Act, 1949

This section revises the nomination rules for bank deposits:

• Depositors can now nominate one or more persons (up to four) instead of just one.
• Nominations can be made successively or simultaneously.
• The Act specifies how such nominations will be treated in terms of priority and proportional entitlement.

Section 11 — Amendment of Section 45ZC

• Allows similar nomination flexibility for bank accounts held jointly or singly, enabling nomination of up to four persons successively.

Section 12 — Amendment of Section 45ZE

• Extends the same nomination provisions to bank lockers.
• Account holders hiring lockers can now nominate up to four persons successively, who may gain access to the locker in case of the account holder’s death.

Section 13 — Insertion of New Section 45ZG – Priority of Successive Nominations

• Introduces a clear hierarchy of nomination priority when multiple persons are nominated successively.
• If one nominee dies, the next nominee in order automatically becomes the rightful claimant.
• The provision also clarifies that if no order of priority is mentioned, the names will be treated as nominated in the order they appear.

Together, these amendments provide greater clarity and flexibility in how customers can manage their bank accounts, deposits, and lockers, particularly regarding succession planning and access to funds after the depositor’s death.

Starting November 1, 2025, the new rules under the Banking Laws (Amendment) Act, 2025 will allow depositors and locker holders to name up to four nominees, specify their priority order, and simplify access to funds or locker contents after the depositor’s death.

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