Up to Four Nominees for Bank Accounts – Full Guide, Benefits & New Rules November 2025

Up to Four Nominees for Bank Accounts

Breaking News: Starting November 1, 2025, a major change will come into effect in India’s banking system. Under the Banking Laws (Amendment) Act, 2025, account holders will now be allowed to nominate up to four people for their bank accounts and lockers.

This new rule aims to make the claim process smoother, faster, and more transparent for depositors and their families. Here’s everything you need to know about this change, how it works, and why it matters to you.

What Does “Up to Four Nominees for Bank Accounts” Mean?

Until now, most banks only allowed one nominee per account or locker. That often caused problems when that person was unavailable or passed away before the claim was made.
Now, from November 1, every account holder can name up to four nominees. This means you can divide the rights to your bank deposits and locker contents among multiple trusted individuals such as your spouse, children, or close relatives.

These rules are being implemented under Sections 10 to 13 of the Banking Laws (Amendment) Act, 2025, which officially take effect next month.

Why This New Rule Matters

The new nomination rule gives account holders greater flexibility and peace of mind. With the ability to add multiple nominees, you can ensure that your money and valuables are distributed exactly the way you want, without legal delays or disputes.

It also brings uniformity and transparency across all banks. Whether your account is in a public, private, or cooperative bank, the same process will apply saving time and confusion during claims.

How to Add Up to Four Nominees for Bank Accounts

You can update your nominations easily through both online banking and branch visits. Here’s how to do it step-by-step:

1. Visit your bank branch or log in online.
   Go to the “Nomination” section under account services.
2. Fill out the nomination form.
   Add the names of your nominees (up to four) along with their relationship and contact details.
3. Specify each nominee’s percentage share.
   The total must always equal 100%. For example:
   • Nominee 1 – 40%
   • Nominee 2 – 30%
   • Nominee 3 – 20%
   • Nominee 4 – 10%
4. Submit and verify.
   You may be asked to verify the update using an OTP or your signature.

Once processed, the bank will issue a confirmation or updated statement reflecting the new nominees.

How the New Rule Applies to Lockers

While deposit accounts can have simultaneous nominees, lockers follow a slightly different rule.
For bank lockers and safe custody items, only successive nominations are allowed. This means if the first nominee becomes unavailable or ineligible, the next person on the list will automatically become the claimant.

This approach ensures that access to lockers remains secure and uninterrupted, even if the primary nominee is unable to claim it.

Benefits of Allowing Up to Four Nominees for Bank Accounts

The change brings multiple benefits for customers:

• ✅ Simplified claim process: No need for legal heirs to produce complicated documentation.
• ✅ Better financial control: You can distribute funds among multiple family members.
• ✅ Transparency: Each nominee’s share is clearly defined.
• ✅ Reduced disputes: Clear nominations minimize family conflicts after the account holder’s death.
• ✅ Stronger trust in the banking system: This reform builds customer confidence and makes banking more inclusive.

Key Points to Remember

• Always ensure the total allocation equals 100% among all nominees.
• You can change or cancel nominations anytime using a simple form.
• If you don’t make any nomination, your legal heirs will still need to go through a longer verification process.
• Banks will soon release the Banking Companies (Nomination) Rules, 2025, explaining all procedures and sample forms in detail.

Common Mistakes to Avoid

Many people forget to:

• Update nominees after marriage, divorce, or the birth of a child.
• Include correct spelling and identification details of nominees.
• Inform family members about who the nominees are.

Avoiding these mistakes will ensure your loved ones can easily claim what’s rightfully theirs.

What’s Next for Account Holders

The new rules will apply to all banks across India from November 1, 2025. The Finance Ministry has clarified that these reforms will make nomination management simpler, more transparent, and user-friendly for everyone.

So if you haven’t reviewed your bank nominations recently, now is the perfect time to do it. Adding or updating your nominees can take just a few minutes, but it will make a world of difference to your family in the future.

Conclusion

The introduction of the rule allowing up to four nominees for bank accounts marks a significant step toward modernizing India’s banking system. It brings clarity, safety, and convenience for millions of depositors.

By following this new rule, account holders can easily secure their savings and locker contents for the people they trust the most. Don’t wait review your bank nominations before November 1 and take full advantage of this new reform.