The Ministry of Finance (Department of Financial Services) has notified the Banking Companies (Nomination) Rules, 2025, replacing the earlier Banking Companies (Nomination) Rules, 1985 and Co-operative Banks (Nomination) Rules, 1985. The new rules, published in the Gazette of India on October 27, 2025, will come into effect from November 1, 2025.
The updated framework simplifies and digitises the process for bank customers to nominate individuals for their deposits, safe custody articles, and safety lockers.
Key Highlights of the New Nomination Rules
Digital and e-Nomination Facility: Banks can now offer customers the option to make, modify, or cancel nominations through electronic or digital modes, provided they have secure systems in place for verification and authentication.
Maximum of Four Nominees: A depositor can nominate up to four individuals for any account, deposit, or locker - either successively (in order of priority) or simultaneously (with defined percentage shares).
Mandatory Authentication: For e-nominations, banks must use reliable authentication methods, including electronic signatures, IT Act-approved authentication technologies, or internet/mobile banking systems.
- Single-factor authentication is valid for e-sign or digital authentication.
- Two-factor authentication is mandatory when using internet or mobile banking channels.
Nomination for Minors: In cases where the nominee is a minor, the depositor can appoint a guardian to receive the amount on behalf of the minor in the event of the depositor's death.
Applicability: The new rules apply to:
- Bank deposits,
- Articles in safe custody, and
- Safety lockers.
Seamless Modifications: Depositors can modify or cancel previous nominations at any time during the period the deposit or locker remains with the bank.
Extended Nomination Facility: Customers can request banks to extend the same nomination to multiple accounts within the same bank.
Objective
The Banking Companies (Nomination) Rules, 2025 aim to modernise and digitise the nomination process, ensuring ease of access, transparency, and safety for customers, while reducing paperwork and manual intervention.
These rules are expected to improve operational efficiency in the banking sector and enhance convenience for millions of account holders across India.
- Official Notification: G.S.R. 790(E), dated October 27, 2025
- Issued by: Ashish Madhaorao More, Joint Secretary, Ministry of Finance
- Effective Date: November 1, 2025
Official copy of the notification has also been attached
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