- The Finance Ministry has announced that, effective November 1, 2025 , customers can nominate multiple individuals for bank accounts, safe custody articles, and lockers under provisions of the Banking Laws (Amendment) Act, 2025 .
Key Provisions:
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Customers can now nominate up to four individuals for deposit accounts, with specific percentage allocations totaling 100%.
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For safe custody articles and lockers , only successive nominations are allowed; the next nominee becomes eligible after the death of the preceding nominee.
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The changes aim to enhance flexibility, transparency, and efficiency in asset transmission after a depositor’s death.
Background:
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The Banking Laws (Amendment) Act, 2025 introduces 19 amendments across five legislations, including the RBI Act, 1934 , and Banking Regulation Act, 1949 .
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Nomination facilities were first introduced in the 1980s , and public sector banks were nationalised in 1969 and 1980 .
Impact:
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Simplifies claims settlement for depositors and heirs.
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Requires banks to update internal systems and forms to comply with the new rules.
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Strengthens consumer rights and supports financial inclusion .
Month: Current Affairs - October 24, 2025
Category: Banking & Finance