Bank Accounts Can Now Have Four Nominees; Successive Nomination System Introduced for Lockers
New Delhi, 23rd October 2025: The Finance Ministry announced a major change in banking rules, allowing customers to register up to four nominees for their bank accounts. The new system also lets account holders decide the share of each nominee and establish the priority order of claims, simplifying the inheritance and claim process.
The changes, which will take effect from 1 November 2025, aim to make banking claims more transparent, faster, and dispute-free. Guidelines detailing the process for adding, changing, or canceling nominees will be issued soon.
Key Features of the New Nominee System:
- Customers can now nominate one, two, three, or four people for a bank account.
- The share of each nominee can be predetermined, ensuring clarity on fund distribution.
- Nominees can be changed or canceled at any time.
- Account holders can also appoint a successive nominee—if the first nominee passes away, the next nominee in order becomes eligible to claim the funds or assets.
Successive Nominations for Lockers:
For safe custody and lockers, only successive nominations will be allowed. This means if the first nominee is unavailable, the second nominee automatically becomes eligible to claim jewelry, documents, or valuables stored in lockers. This system is expected to reduce delays and legal complications in inheritance claims.
Benefits to Customers:
- Families can now divide account balances equally or proportionally, for example, allocating 25% each to a spouse, son, daughter, and parent.
- Previously, having a single nominee often led to family disputes and legal battles.
- The new system minimizes disputes, saves time, reduces financial and emotional stress, and ensures transparent transfers.
- If four nominees are already registered, banks can directly transfer funds or locker contents to the rightful nominee based on recorded priority.
The Finance Ministry said this move is expected to enhance trust in the banking system and make claims more straightforward for account holders and their families.
