Centre Revises Nomination Rules for Bank Deposits, Lockers, and Safe Custody [Read Notification]

The Ministry of Finance (Department of Financial Services) issued Notification No. G.S.R. 790(E) dated October 27, 2025, announcing the Banking Companies (Nomination) Rules, 2025. The new rules have been framed under the Banking Regulation Act, 1949, after consultation with the Reserve Bank of India (RBI).

They replace the existing Banking Companies (Nomination) Rules, 1985 and the Co-operative Banks (Nomination) Rules, 1985, and will come into effect from November 1, 2025.

The updated rules aim to modernize and simplify the nomination process for customers of banks and co-operative banks. A nomination allows an account holder to name a person who can claim the money in a deposit account, articles kept in safe custody, or the contents of a locker in the event of the account holder’s death.

The new framework introduces the concept of electronic or digital nomination (e-nomination), making the process faster, more transparent, and easily accessible.

Under the revised rules, a bank customer can nominate up to four individuals either at the same time or in a specific order of priority. These nominees can be appointed for bank deposits, articles placed in safe custody, and safety lockers.

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The government has also clarified that in cases where a nominee is a minor, the depositor can name another adult as a guardian to collect the amount or articles on behalf of the minor.

The e-nomination facility will be available to customers if the bank provides such an option. The bank must ensure that e-nominations are properly verified using electronic signatures, secure authentication techniques, or two-factor authentication for internet and mobile banking. In addition, banks must send alerts to customers whenever a nomination is created or modified.

The new rules also allow depositors to change or cancel nominations at any time, and any new nomination will automatically cancel the previous one. The rules will help in smoother settlement of claims, reduce disputes among legal heirs, and improve convenience for customers by offering both physical and digital options.

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