Bank Nomination Rules 2025: Up to 4 Nominees

From 1 November 2025, you can name up to four nominees on your bank deposit account, your locker, and articles kept in safe custody. The old single-nominee limit that had stood since 1985 is gone. This page explains exactly what changed, the difference between simultaneous and successive nomination, how to update your nominees at the branch, and what your family must still do when you die.

You can now name up to four nominees per bank account, locker, or safe-custody item, effective 1 November 2025 under the Banking Laws (Amendment) Act, 2025. Deposit accounts allow either simultaneous nomination, with percentage shares totalling 100, or successive ranking. Lockers and safe-custody articles allow successive nomination only.

What bank nomination is

A nomination is a written instruction telling your bank who should receive the money in your account, or the contents of your locker, after you die. The nominee collects the funds quickly without a court order. Nomination decides who receives, not who finally owns, the asset.

The change comes from the Banking Laws (Amendment) Act, 2025, notified in the Gazette on 15 April 2025. Sections 10 to 13 of that Act amend the nomination provisions of the Banking Regulation Act, 1949, and were brought into force from 1 November 2025.

Earlier, Section 45ZA of the Banking Regulation Act, 1949 allowed a depositor to nominate only “one person”. The 2025 Act replaces this with “one or more persons not exceeding four, either successively or simultaneously”. The same four-nominee facility now extends to articles in safe custody and the contents of safety lockers.

The Reserve Bank of India is the authority that operationalises these provisions across banks. The detailed forms and procedure come through the Banking Companies (Nomination) Rules, 2025, which replace the older 1985 rules.

One point families must understand: a nominee is a trustee, not the owner. In Shakti Yezdani v. Jayanand Jayant Salgaonkar (Supreme Court, December 2023), the Court held that a nominee receives the asset only to hold it for the legal heirs, and does not become its absolute owner. Nomination speeds up release of money; succession law decides final ownership.

Step-by-step: how to add or update nominees

  1. Visit your bank branch, or log in to net banking or the mobile app, and open the nomination or beneficiary section.
  2. Choose the account, locker, or safe-custody item you want to set nominees for.
  3. For a deposit account, decide between simultaneous nomination, where all nominees share at once, or successive nomination, where they inherit in ranked order. For a locker or safe custody, only successive nomination is allowed.
  4. If you chose simultaneous nomination, write each nominee's percentage share so the total is exactly 100.
  5. Fill the prescribed nomination form for each nominee, giving full name, relationship, address, and date of birth.
  6. Sign the form. If you sign with a thumb impression, two witnesses must attest it.
  7. Submit and collect the bank's acknowledgement. Always confirm in writing that the nomination is registered.
  8. Review and update your nominees after any major life event, such as marriage, divorce, a birth, or a death.

Documents required

  • Your account number, locker number, or safe-custody reference.
  • Identity proof of the account holder, such as Aadhaar or PAN.
  • The bank's nomination form, one set per nominee.
  • Each nominee's full name, relationship, address, and date of birth.
  • For a minor nominee, the name and details of the appointed guardian.
  • Two witnesses if the account holder signs by thumb impression.

Common mistakes to avoid

  • Assuming the nominee becomes the owner. Under Shakti Yezdani v. Jayanand Jayant Salgaonkar (Supreme Court, December 2023), the nominee only holds the money for the legal heirs.
  • Trying simultaneous nomination on a locker. For lockers and safe-custody articles, only successive nomination is permitted under the 2025 amendment.
  • Letting percentage shares total more or less than 100 in a simultaneous nomination. The shares must add up to exactly 100.
  • Believing your old single nominee was automatically upgraded. Existing nominations stay valid, but you must visit the bank to add the extra nominees the new law allows.
  • Naming a minor without appointing a guardian, which can stall the claim.
  • Never updating nominees after a divorce, leaving an ex-spouse in line to receive funds.

Dr. Shrawan Kumar Pathak, a retired professor in Patna district, held a fixed deposit of ₹18,00,000 and a bank locker. On 12 November 2025, soon after the new rules began, he visited his branch. On the deposit he set simultaneous nomination: his wife 50 percent, and his two children 25 percent each, totalling 100. On the locker, where only successive nomination is allowed, he ranked his wife first and his elder child second. When he died on 3 March 2026, the bank released ₹9,00,000 to his wife and ₹4,50,000 to each child within weeks, without a court order, exactly as he had recorded.

Frequently asked questions

How many nominees can I name on a bank account in 2025?

Up to four, on deposit accounts, lockers, and safe-custody articles, effective 1 November 2025 under the Banking Laws (Amendment) Act, 2025.

What is the difference between simultaneous and successive nomination?

In simultaneous nomination, all nominees receive a defined percentage share at the same time. In successive nomination, the next nominee inherits only after the death of the one ranked above.

Can I use simultaneous nomination for my locker?

No. For lockers and safe-custody articles, only successive nomination is allowed. Simultaneous nomination with percentage shares applies only to deposit accounts.

Do the percentage shares have to add up to anything specific?

Yes. In a simultaneous nomination, the shares you assign to the nominees must total exactly 100 percent.

Is my old single nominee still valid?

Yes, existing nominations remain valid. To add up to three more nominees under the new law, you must update your nomination at the bank.

Does the nominee become the owner of my money?

No. The Supreme Court in Shakti Yezdani v. Jayanand Jayant Salgaonkar (December 2023) held the nominee is a trustee who holds the funds for the legal heirs. Final ownership follows succession law or your will.

Can a minor be a nominee?

Yes, but you must appoint a guardian to receive the amount on the minor's behalf until the minor turns 18.

Is there a fee to register or change a nomination?

Registering a nomination is generally free. Banks may charge a small fee for changes; confirm the current fee with your branch.

What if I die with no nominee at all?

The legal heirs must claim the funds using succession documents such as a succession certificate, letter of administration, or probate, which takes longer.

Sources

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