Big relief for bank customers: Add up to 4 nominees, claim settlement made easier starting today

New Delhi (The Uttam Hindu) : There is a big relief news for bank customers. Now customers will be able to add up to four nominees to their bank account and will also be able to decide how much share each nominee will get and who will be given priority. This new rule will come into effect from November 1, 2025. According to the Finance Ministry, this change has been made with the aim of making the claim settlement process in the banking system easy and transparent. The Ministry said that this provision has been brought under the Banking Laws (Amendment) Act, 2025, which was notified on April 15 this year.

What does the new rule say?

Customers will now be able to add up to four nominees for their bank account, safe custody items, or locker.

* Customers will be able to decide what percentage of the share each nominee will receive.

* If the first nominee is no longer there, the next nominee will automatically become effective.

* Only sequential nomination (one after the other) will be allowed for safe custody and locker.

* Customers can add all four names together or one by one if they wish.

What did the government say?

The Finance Ministry said, "This new system will bring clarity to the settlement and succession process. Customers can appoint up to four nominees and clearly specify their share, making the claim process faster and transparent." The ministry also stated that new forms and procedures for creating, canceling, or changing a nominee under the "Banking Companies (Nomination) Rules, 2025" will be issued soon.

What benefits will ordinary customers get?

* Claim settlement delays and disputes will be reduced.

* Transparent division will reduce family disputes.

* Security of bank accounts, lockers, and investments will be strengthened, as will the succession process.

* Adding or changing nominations in digital format will be easier.

* Transparency and accountability will increase in the banking system.

What is a nominee?

A nominee is a person named in a bank account, investment, or insurance policy to claim the funds or assets in the event of the account holder's death. However, the nominee acts only as a trustee—the true beneficiaries are the legal heirs. If the deceased has heirs, the funds are distributed according to their legal rights.