New Banking Rules Take Effect: Customers Can Now Add Multiple Nominees for Accounts and Lockers

From November 1, 2025, several new banking regulations have officially come into effect, introducing significant updates for savings account and locker holders across India. The Reserve Bank of India (RBI) has implemented new guidelines that allow customers to register more than one nominee for their bank accounts and lockers. This long-awaited reform aims to make banking safer, more transparent, and customer-friendly.

Until now, most banks allowed only one nominee for a savings account or locker. However, the new rule now gives customers the flexibility to nominate multiple trusted individuals who can access their funds or locker contents in the event of unforeseen circumstances. This change ensures better protection of assets and smoother claim settlements for families.

Applicable to All Banks

The RBI’s new directive applies uniformly to all banks, including public sector banks, private institutions, cooperative banks, and regional rural banks. As per the new rule, every bank must now mandatorily offer a nomination facility for both savings accounts and lockers.

If a customer chooses not to appoint any nominee, they must provide a simple written declaration stating their decision. Importantly, banks can no longer delay account openings or locker allocations on the grounds of missing nomination details. This clause ensures that customers face no unnecessary procedural hurdles.

Banks Must Provide Acknowledgement Within Three Days

Under the updated guidelines, once a customer submits their nomination form, the bank must issue an acknowledgement receipt within three working days. Additionally, this confirmation should be clearly mentioned in the passbook, fixed deposit receipt, or locker agreement, stating that the nomination has been registered.

Banks are also required to digitally update the nominee details in their internal systems to maintain transparency and accuracy.

Freedom to Change or Remove Nominees Anytime

The new rules give customers full control over their nomination details. If someone wishes to change or remove a nominee, they can do so at any time by submitting a written request to the bank. Upon receiving this request, the bank must update the records promptly without delay.

In case a bank finds any incorrect information or decides to reject a nomination request, it must provide a written explanation within three working days, ensuring clear communication and accountability.

Faster Claim Settlement After Account Holder’s Death

The RBI has also reiterated its rule that in the unfortunate event of a customer’s death, the concerned bank must settle the nominee’s claim within 15 days of receiving the required documents. Any delay beyond this period will make the bank liable to pay compensation to the claimant.

This provision reinforces customer protection and ensures that family members or legal heirs do not have to face unnecessary delays during difficult times.

Why the Change Matters

This update marks a major step toward improving customer convenience and financial security in India’s banking system. Allowing multiple nominees minimizes disputes among heirs and helps ensure that the rightful beneficiaries receive funds without legal complications.

By making acknowledgements and digital updates mandatory, the RBI is pushing banks toward greater transparency, efficiency, and accountability. Moreover, the simplified written declaration process for those opting out of nomination adds a customer-friendly touch, reducing bureaucratic friction.

With these new norms effective from November 1, 2025, customers are encouraged to review their existing accounts and lockers to ensure that nomination details are up to date. Doing so will not only secure their financial assets but also offer peace of mind for the future.