The Government of India has brought about major alterations in banking laws by enacting the Banking Laws (Amendment) Act, 2025, which will be effective from November 1, 2025. Among other things, the changes will make it easier to nominate, claim, and protect depositors in all banks.
Maximum of Four Nominees
The most important change made is that now bankers may appoint up to four nominees for their savings accounts, fixed deposits, and items held in safekeeping. Up to one nominee was allowed previously. Now, the customer is free to assign percentage shares to each nominee specifically so that smooth and just claim settlements among family members will be achieved.
Easy Claim Settlement
The new regulations will help facilitate the claim process in the event of the account owner’s death. Clear percentage allocations and multiple nominees mean that the bank can process claims quickly and with little or no contention. This is very useful for families in times of grief by lessening the wait and cutting down on legal hassles.
Legal Support and Enforcement
The changes are part of the 19 amendments that have been made to five principal banking laws, among them the Banking Regulation Act, 1949, and the State Bank of India Act, 1955. The rules of nominations covered in sections 10 to 13 of the Act will be put into effect from November 1, 2025, according to the official notification issued by the Ministry of Finance.
New Banking Rules 2025 Summary
| Feature | Old Rule | New Rule (2025) |
|---|---|---|
| Number of Nominees Allowed | 1 | Up to 4 nominees |
| Nominee Share Allocation | Not mandatory | Mandatory (must total 100%) |
| Claim Settlement Process | Manual, time-consuming | Simplified with clear nominee shares |
| Coverage | Limited to deposit accounts | Includes lockers and safe custody items |
| Implementation Date | — | November 1, 2025 |
Final Thoughts
The 2025 banking reforms mark a significant move toward making India’s financial system more contemporary. The government in these reforms is facilitating the claim process in a simpler way, and also introducing multiple nominees which will guarantee more transparency, quicker service, and safer depositors. It is recommended that banks’ customers refresh their nomination particulars with the banks prior to the enforcement of the new legislation.
