Can 'so many' nominees now be added to a bank account? Major decision from November 1

In Brief

• From November 1, 2025, bank account holders will be allowed to nominate up to 4 persons for their accounts.

• Account holders can choose 1, 2, 3, or 4 nominees as per their preference.

• The depositor must specify a certain share or percentage for the nominated person, ensuring the total amounts to 100 percent.

From November 1, 2025, bank account holders will be allowed to nominate up to 4 persons for their accounts. To protect the interests of depositors and to make the claims process in the banking system faster and more transparent, the central government has made significant amendments to the banking law.

The central finance ministry clarified on Thursday that these new provisions will be implemented under the 'Banking Laws (Amendment) Bill 2025'. According to the new rules, account holders can choose 1, 2, 3, or 4 nominees as per their preference. Additionally, the depositor must determine a specific share or percentage for each nominee, ensuring the total amount equals 100 percent.

This method will allow for the distribution of deposits among all nominees in a clear and transparent manner after the account holder's demise. This will provide significant relief from inheritance disputes and delays in the claims process.

This bill provides for unclaimed deposits, shares, interest, or bonds to be transferred to the Investor Education and Protection Fund (IEPF). Additionally, it grants the concerned individuals the legal right to reclaim their money from this fund. According to the new rules, nominations can also be made from time to time for bank accounts and locker facilities. As a result, after the depositor's death, their money, shares, or assets will be transferred to the rightful heirs in a convenient and official manner, as clarified by the Ministry of Finance.