In a significant reform aimed at easing financial claim procedures for families, the Reserve Bank of India (RBI) has announced new Nominee Rules for bank accounts, effective November 1, 2025.
Under the revised framework, account holders will now be able to add up to four nominees for their bank accounts — a major change from the earlier rule that permitted only one nominee.
Key Highlights of the New Nominee Rules
- Multiple Nominees Allowed: Account holders can now nominate up to four individuals for savings, current, and term deposit accounts.
- Flexible Share Allocation: Customers can assign percentage-wise shares among nominees. For example — Spouse (50%), Son (25%), Daughter (25%).
- Choice of Nomination Type:
- Simultaneous Nomination: All nominees are valid together, and settlement will be based on assigned shares.
- Successive Nomination: The next nominee becomes eligible only if the primary nominee is not alive at the time of claim.
Why This Matters
Previously, if the sole nominee predeceased the account holder, families had to navigate complex documentation, legal heir certificates, and lengthy claim processes to access funds. The new rule is expected to reduce paperwork, prevent family disputes, and ensure faster settlements.
Expert Take
Banking and financial experts have welcomed the move, calling it a “long-overdue but people-centric reform.” The flexibility to assign multiple nominees and share percentages brings India in line with global best practices in financial inheritance management.
What Customers Should Do
From November 1, account holders are advised to review and update their nominations to include additional nominees and define share allocations as per their preference.
This reform — though seemingly small — promises to make a big difference for millions of Indian families, ensuring smoother transfer of assets and peace of mind for account holders.
Credit where it’s due — the government’s continued push for financial simplification is making everyday banking more secure and citizen-friendly.
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