RBI’s Revised Nomination Rules for Deposits and Lockers
Why in the news
RBI updated the nomination framework to speed up claim settlement for nominees while leaving the choice to nominate with customers.
Key facts
- Effective: 1 November 2025.
- Covers: deposit accounts (savings, current, fixed), safe deposit lockers, articles in safe custody.
- Multiple nominees: up to four, each with a stated share.
- Successive nomination: next nominee becomes operative only after the previous nominee’s death.
Voluntary nomination
- Banks must tell customers about the facility and its benefits.
- Account opening cannot be denied or delayed over non-nomination.
- Customers opting out give a written declaration; if they refuse, the bank records the refusal.
Other provisions
- If a nominee dies before receiving the asset, that nomination lapses and rules for accounts without nominees apply.
- Banks must keep systems to register nominations, record cancellations and update changes, and confirm details to customers.
Objectives
- Quick, hassle-free claim settlement for nominees and legal heirs.
- Ease of banking for families, uniformity across banks, and a balance of customer choice with operational efficiency.
Exam angle
- Maximum simultaneous nominees: four.
- Effective date: 1 November 2025.
- Related law: Banking Laws Amendment Act, 2025.