The Reserve Bank of India (RBI) has issued new guidelines titled “Reserve Bank of India (Nomination Facility in Deposit Accounts, Safe Deposit Lockers and Articles kept in Safe Custody with the Banks) Directions, 2025.” These guidelines aim to make it easier for family members or legal heirs to claim money or valuables from banks in case of the account holder’s death.
Let’s understand the key points in simple terms 👇
🏦 What Is a Nomination Facility?
The nomination facility allows a bank customer to name a nominee (a person they trust) who will receive the money in their deposit account, or the contents of a locker or safe custody, if the customer passes away. This ensures quick and hassle-free settlement without the need for lengthy legal procedures. Following the amendment to the Banking Laws (Amendment) Act, 2025, which takes effect on November 1, 2025, bank account holders may nominate up to four individuals for their deposit accounts, articles held in safe custody, and bank lockers. Nominations can be made either simultaneously, by specifying each nominee’s percentage share for deposit accounts, or successively, by indicating nominees in order of priority.
📜 Why Has RBI Issued New Directions?
- The Banking Laws (Amendment) Act, 2025 and the Banking Companies (Nomination) Rules, 2025 have introduced new provisions related to nomination.
- RBI has updated its instructions to align with these new legal changes.
- The revised rules will be effective from November 1, 2025 and will apply to all banks, including public sector, private sector, regional rural banks, and cooperative banks.
🧾 Key Highlights of the 2025 Nomination Directions
1. Nomination Must Be Offered for All Accounts
Banks must offer the nomination facility for deposit accounts (savings, current, term deposits), safe deposit lockers, and articles kept in safe custody. Even if a person holds an account for their proprietorship business, it will be treated as their personal account, and nomination must be offered.
2. Customer’s Right to Refuse Nomination
Banks must inform customers clearly about the benefits of making a nomination at the time of account opening. If a customer does not wish to make a nomination, they can opt out by giving a written declaration. If a customer refuses to give this written confirmation, the bank should record this refusal but cannot deny or delay opening the account.
💡 In short: Nomination is optional but highly recommended.
3. Handling of Nominee’s Death
If one of multiple nominees dies before receiving the deposit, the nomination for that person becomes invalid. The claim for that portion will be settled as per RBI’s rules for accounts without nomination (as per RBI Settlement of Claims in respect of Deceased Customers of Banks Directions, 2025).
4. Proper Record and Acknowledgment
- Banks must maintain proper systems to register, cancel, or change nominations.
- They must acknowledge receipt of any nomination form or change request within 3 working days.
- Banks must verify that the nomination complies with the law before confirming.
- If the nomination request is rejected, banks must inform the customer in writing within 3 working days, explaining the reason.
5. Nominee Details in Passbook or Statement
Banks must print the words “Nomination Registered” on the passbook, statement, or term deposit receipt (TDR). The name of the nominee must also be shown in these documents.
6. Awareness and Publicity
Banks must actively educate customers about the importance and benefits of nomination by:
- Printing messages on cheque books, passbooks, and brochures.
- Conducting public awareness drives periodically.
- Including space for nomination details in all new account and locker forms.
💡 Why This Matters to You
Nomination ensures that your family can access your deposits or valuables quickly in case of your unfortunate death. It saves your loved ones from legal delays and complicated claim procedures. You can update, cancel, or change your nomination anytime by submitting a request to the bank.
🗓️ Effective Date
These new rules take effect from November 1, 2025. All banks are required to implement them by this date.
✅ Key Takeaway
Don’t skip the nomination facility. It’s a simple but powerful way to protect your family’s financial rights and avoid future complications.
Source: Reserve Bank of India — “Reserve Bank of India (Nomination Facility in Deposit Accounts, Safe Deposit Lockers and Articles kept in Safe Custody with the Banks) Directions, 2025.”
