With effect from 1 November, depositors may nominate up to four persons as nominees of their bank account, per the Banking Laws (Amendment) Act, 2025.
One can now even specify share for each nominee, ensuring that the total equals 100 percent, the rules further specify.
There is a provision of successive nominee also which means the second nominee would become operative only upon the death of first nominee. The new provisions will come into force from 1 November are meant to promote customer convenience through improved nomination facilities.
Let us understand what these new rules entail:
When nominees are allowed currently, how do the new rules make things simpler?
Earlier, one could keep just one nominee which perhaps was a reason for confusions and disputes among legal heirs. In fact, nominee is technically a custodial of depositor’s bank account. The claim to money in bank account lies with legal heir(s) who can be a nominee as well. With the new rules being introduced, the depositors can allocate the funds among legal heirs (by nominating them as nominees) in any proprtion as they deem fit.
This means nominee is not necessarily a legal heir. Read more about this in a Livemint article here
Is this problem that big? What was the collateral damage of not keeping heirs as nominees?
Ever year, a nmber of depositors die without leaving nominees in their accounts, thus leaving behind assets with no one to claim them. As on June 2025, ₹67,003 crore lay as unclaimed deposits with public and private sector banks across India. With the rules becoming more flexible, this problem can be partially addressed – at least one can hope so. Now, depositors can nominate legal heirs (upto 4) as nominees instead of appointing someone as a custodian to distribute money among heirs.
What are successive nominees as mentioned in the new rules?
Successive nominee refers to a new nominee becoming operatrive when the first one dies before claiming the assets. For example, someone (let us call him Vicky) dies and leaves his wife as nominee. But since the wife is already old, Vicky keeps his two sons as successive nominees just in case the wife dies before claiming his assets in bank account or locker.
What are simultaneous nominations?
These refer to concurrent nominees which means one depositor nominating upto four people who will become nominees at the same time in any ratio as the depositor decides. For example, if Vicky nominates his wife, his two sons and his daughter as equal nominees – each of them will have 25% share in his bank depositors after he dies.
Can one keep simultaneous nominees for lockers?
Since items in lockers are difficult to measure in money terms, it is not allowed to keep simultaneous nominees for lockers. But one can nominate successive nominees for them.