Reserve Bank of India (Nomination Facility in Deposit Accounts, Safe Deposit Lockers and Articles kept in Safe Custody with the Banks) Directions, 2025

The Government of India has notified the Banking Laws (Amendment) Act, 2025 which inter-alia has amended the Sections 45ZA, 45ZC and 45ZE of the Banking Regulation Act, 1949 (the Act). The Banking Companies (Nomination) Rules, 2025 have also been notified which along with amended provisions of the Act shall come into force from November 1, 2025. Accordingly, in order to align the regulatory instructions with the amended provisions of the Banking Regulation Act, 1949 and corresponding Nomination Rules, it has been decided to review the extant instructions on the subject.

RULES FOR NOMINATION

Nomination Facility is available on all deposit accounts, safe deposit locker / safe custody article and deposits held in the name of sole proprietary concern. Nominations are made only in respect of deposits which are held in individual capacity of the depositor and not in any representative capacity as a holder of an office or otherwise. Thus, for instance, a nomination cannot be made in a HUF account.

Successive or Simultaneous nomination has been introduced as under:

(A) Successive Nomination:

• 1. Where the nomination is made successively in favour of more than one person, the nomination shall be effective only in favour of one person in the order of priority specified. (In case Successive Nomination’ is selected then more than one nominee will be allowed with each having 100% share).If the nomination is made in favour of more than one person successively, the nomination shall be effective only in favour of one person in the following order of priority, namely:
     • nomination of the first nominee shall be effective if that nominee survives the person or persons who made the nomination,
     • nomination of the second nominee shall become effective only after the death of the first nominee,
     • nomination of any nominee lower in the order of nomination shall become effective only after the death of all the nominees whose names are higher in the order of nomination.
  2. Where the order of nomination is not mentioned, persons shall be deemed to have been nominated in the order in which their names appear in the nomination.

(B) Simultaneous Nomination:

• 1. Where the nomination is made simultaneously in favour of more than one person, the nomination shall be effective in favour of all such persons in proportion to which it is declared, and the following terms and conditions shall apply, namely:
     • the nomination shall not be made in favour of more than four persons,
     • the nomination shall explicitly state the proportion of amount of deposit in percentage in favour of each nominee,
     • the nomination shall be made in respect of the whole amount of deposit.
     • if any nominee dies before receiving deposit from the banking company, the nomination in respect of such nominee alone shall become ineffective and the amount of deposit purported to be nominated in favour of deceased nominee shall be treated as if nomination had not been made in respect of that portion of deposit.

(C) Either Simultaneous or Successive nominations is allowed for deposit accounts.

(D) Successive nomination is  applicable in the Safe Custody Article / Safe Deposit lockers.

3.2. Separate nominations for Savings Bank account and Pension account:

 Nomination facility is available for Savings Bank Account opened for credit of pension. Banking Companies (Nomination) Rules, 2025 are distinct from the Arrears of Pension

(Nomination) Rules, 1983 and nomination exercised by the pensioner under the latter rules for receipt of arrears of pension will not be valid for the purpose of deposit accounts held by the pensioners with banks for which a separate nomination is necessary in terms of the Banking Companies (Nomination) Rules, 2025 in case a pensioner desires to avail of nomination facility.

Process of Registration of Nomination:

• Registration of Nomination through Branch:
  • Download the Form-> fill the details and submit to Home Branch

• Nomination Form