The Ministry of Finance has issued the Banking Companies (Nomination) Rules, 2025, in consultation with the Reserve Bank of India. These rules will come into effect from November 1, 2025, and supersede the earlier Banking Companies (Nomination) Rules, 1985 and Co-operative Banks (Nomination) Rules, 1985.
The new framework allows bank customers to make nominations for deposits, safety lockers, and articles kept in safe custody, either physically or through electronic/digital mode (“e-nomination”), provided the banking company offers such facilities.
Key provisions include:
• A depositor may nominate up to four individuals, either successively or simultaneously.
• E-nomination authentication can be done through reliable electronic signatures or approved digital verification methods under the Information Technology Act, 2000.
• Banks must acknowledge receipt of nominations, variations, or cancellations both physically and digitally.
• Nomination remains valid even upon renewal of deposits.
• In case of a minor nominee, another individual may be appointed to receive funds on their behalf.