Starting November 1, 2025, bank depositors will be allowed to nominate up to four persons for their bank accounts, according to the Banking Laws (Amendment) Act, 2025.
The new rules also allow depositors to specify the share of each nominee, ensuring that the total allocation adds up to 100 per cent. Additionally, the law introduces a successive nomination feature — meaning a second nominee’s rights become effective only after the first nominee’s death.
The amendments aim to enhance customer convenience and reduce disputes by improving nomination facilities.
How the new rules simplify nominations
Previously, account holders could nominate only one person per bank account. This often led to confusion and disputes among legal heirs after a depositor’s death.
Technically, a nominee acts as a custodian of the deceased’s assets, while the legal heirs are entitled to the funds.
Under the new rules, depositors can now nominate multiple heirs — up to four — and allocate shares among them in any proportion, helping prevent future conflicts and ensuring clarity on asset distribution.
Why the change was needed
Every year, thousands of depositors die without naming nominees, leaving their money unclaimed.
As of June 2025, banks across India held ₹67,003 crore in unclaimed deposits, according to government data.
By allowing multiple nominations, the government aims to reduce unclaimed deposits and ensure that rightful heirs can access the funds more easily.
What are successive nominees?
A successive nominee becomes effective only if the primary nominee dies before claiming the assets.
For example, if Vicky names his wife as the first nominee and his two sons as successive nominees, the sons will inherit the right to claim the money only if the wife passes away before doing so.
What are simultaneous nominations?
Simultaneous nominations allow a depositor to nominate up to four people at once, each receiving a pre-specified share of the funds.
For instance, if Vicky nominates his wife, two sons, and daughter equally, each would receive 25 per cent of his bank balance upon his death.
Locker nominations
For bank lockers, simultaneous nominations are not permitted because the contents are not easily divisible or quantifiable.
However, successive nominations are allowed — meaning a secondary nominee can step in if the primary nominee dies before claiming the locker’s contents.