The government has introduced new banking nomination rules effective from November 1, 2025.
These rules aim to make it easier and faster for families to receive money from a deceased account holder, reducing delays and eliminating disputes.
You Can Now Add Up to Four Nominees
Under the new rules, customers can add as many as four nominees to a bank account.
You can choose one primary nominee and the rest as successor nominees.
This means the bank will pay the primary nominee first.
If they are not alive, the next nominee in the list will automatically receive the funds.
This ensures that money reaches the right person without confusion.
Who Should Be the Primary Nominee?
Your primary nominee should be the person who depends on you the most, usually your spouse or your main family member.
Successor nominees can be your children or other relatives.
It’s important to update your nominations whenever there is a major change in your life, such as marriage, childbirth, or the death of an existing nominee.
Why These New Rules Are Helpful
The biggest benefit is financial security for your family.
If the first nominee cannot receive the funds, the next nominee will immediately take their place.
This avoids delays and legal complications.
The RBI has also made it mandatory for banks to settle claims within 15 days after receiving all required documents.
This will save families from running around banks and courts.
Two Types of Nomination Options
You now get two choices for savings and fixed deposit accounts:
1. Simultaneous Nomination
If you want to divide your money among multiple people at the same time (for example, 50% to your wife and 50% to your son), you can choose this option.
2. Successive Nomination
If you want the money to pass from one person to the next in order (first wife, then son, then another person), you can choose this.
Banks will provide separate forms for both types so customers can select what suits them.
For lockers and safe custody services, only successive nominations are allowed.
Here, the bank will consider only the first surviving nominee as the valid one.
Why Planning Your Nomination Matters
Experts say the new rules make the system clearer and more flexible.
Planning your nominations properly ensures your money is passed on smoothly, without interruptions or disputes.
