Banking Laws (Amendment) Act, 2025: Nomination Rules from Nov 1

Current Context: The Ministry of Finance announced on 23 October 2025 that the nomination-related provisions of the Banking Laws (Amendment) Act, 2025 will come into effect from 1 November 2025.

• These provisions apply to deposit accounts, bank lockers, and articles in safe custody across all scheduled banks.
• Customers can now nominate up to four individuals, either jointly or successively, instead of being restricted to a single nominee.
• They will also have the flexibility to add, update, or change nominees at any time.
• Banks will follow uniform claim settlement rules, ensuring faster and more transparent processing for heirs.
• The reform enhances depositor protection, reduces disputes, and aligns India’s banking practices with global standards.

Question:

Q.1 The nomination provisions of the Banking Laws (Amendment) Act, 2025 apply to which of the following?
a) Only deposit accounts
b) Deposit accounts, bank lockers, and articles in safe custody
c) Only current accounts
d) Only fixed deposits

Answer: b) The Act covers all customer holdings with scheduled banks, including deposits, lockers, and safe custody articles.