The Finance Ministry has announced a major change for bank deposit accounts and lockers in India. From November 1, 2025, account holders can nominate up to four people instead of just one. This change, under the Banking Laws (Amendment) Act 2025, offers more flexibility and security for your finances. Here’s what you need to know.
1. What Are Nominations in bank Accounts?
A nominee is a person you authorize to receive your bank deposits or locker contents in case of your demise. Traditionally, bank accounts allowed only one nominee, but the new rules let you designate up to four nominees.
Why it matters: Multiple nominees ensure your assets are divided fairly among loved ones and reduce legal complications.
2. Simultaneous vs. Successive Nominations
The new system allows for two types of nominations:
· Simultaneous Nomination: All four nominees share the bank assets equally or as per specified proportions.
· Successive Nomination: Nominees receive the assets one after another, based on their priority, if the previous nominee is unavailable.
This flexibility ensures that your money reaches the intended people efficiently.
3. Benefits of Having Four Nominees
a) Avoid Legal Hassles
With multiple nominees, the risk of disputes among family members decreases. Banks can release funds faster without lengthy court procedures.
b) Fair Distribution
You can divide your bank balance or locker contents among children, spouse, or other family members in exact proportions you choose.
c) Enhanced Security
In case a nominee predeceases you, the successive nomination ensures your assets don’t get stuck or go to unintended parties.
d) Peace of Mind
Knowing that your wealth is properly allocated gives you and your family peace of mind, especially during emergencies.
4. How to Update Your Nominees
Updating nominees is easy:
1. Visit your bank branch or use online banking
2. Fill out the nomination form
3. Specify simultaneous or successive nomination
4. Submit and confirm
Tip: review nominees periodically to ensure the information is up to date.
5. Who Can Be a Nominee?
· Family members or close relatives
· Adults (above 18 years old)
· Trusts or organizations (in some cases)
6. Final Take
The ability to nominate up to four people is a game-changer for financial planning. It ensures your assets are distributed smoothly, fairly, and securely, reducing stress for your loved ones. Start planning now to make the most of this new provision!
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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