The Reserve Bank of India (RBI) has made important changes in the rules relating to nomination facility for bank accounts, lockers and safe custody to enhance customer convenience and transparency. The new guidelines will come into effect from November 1, 2025. Their purpose is to ensure that the account holder’s family or heirs can easily access the money or assets after their death.
Every customer will be eligible for “Nomination Facility”
Under the new RBI rules, it will now be mandatory for every bank to provide nomination facility to all customers. This means that whenever a new account is opened, the bank must inform the customer that they can nominate someone for their account, locker or safe custody. If the customer does not wish to nominate, the Bank must obtain a written declaration from him stating that he does not wish to nominate at present. However, the bank cannot refuse to open the account if the customer refuses to do so in writing.
The process will be completed within three days
RBI has given strict instructions to banks that any nomination process – be it new entry, change or cancellation – should be completed within three working days. If a customer’s form is found incomplete or incorrect, the bank must explain the reason to the customer within three days.
“Nomination Registered” will be displayed on the passbook and TDR
All banks will now also have to ensure that “nomination registered” is clearly mentioned in the passbooks, statements or term deposit receipts (TDR) of the customers. Apart from this, the name of the nominee will also be recorded on the passbook or TDR.
This process will be easier for the family
RBI says that this feature will make the claim process after the death of the customer faster and simpler. Banks will now be able to transfer money or locker contents directly to the nominated person, avoiding legal hassles. If there is more than one nominee in an account and one of them dies untimely, the bank will make the payment to the remaining nominee.
Also applicable to proprietorship accounts
RBI has clarified that if a person operates a proprietorship firm account in his own name, he will be provided nomination facility like an individual account.
Banks will have to run awareness campaigns
Not only to enforce the rules, RBI has also directed all banks to make customers aware about the importance of nomination facility. For this, banks will have to print relevant messages on check books, passbooks and other forms as well as run awareness campaigns.
31 old circulars will be canceled
With the new rules, RBI has canceled 31 old circulars issued from 1986 to 2021. All these will now come under the new “Reserve Bank of India (Nomination Facility in Deposit Accounts, Safe Deposit Lockers and Articles Kept in Safe Custody) Directions, 2025”.
1. When will the new nomination rules of RBI come into effect?
These rules will be applicable across India from November 1, 2025.
2. Is it now mandatory to give a nominee?
Not mandatory, but if the customer does not give a nominee, he will have to give a written declaration.
3. How much time will it take to change the nominee?
The bank will have to complete the process of adding, changing or canceling the nominee within 3 days.
4. Will the nominee’s name appear in the passbook?
Yes, now it will be mandatory to display “Nomination Registered” and name of the nominee on the passbook and TDR.
5. Will these rules apply to old accounts also?
Yes, these rules will apply equally to all bank accounts, lockers and safe custody accounts.