Govt. Allows Bank Depositors to Appoint Up to 4 Nominees Under New Rules from Nov 1, 2025

Notification no. G.S.R. 790(E); dated: 27.10.2025

1. Introduction

The Government of India has notified the Banking Companies (Nomination) Rules, 2025, introducing a revised framework for nomination facilities in bank accounts.

These rules modernise the nomination process by incorporating digital authentication mechanisms and ensuring enhanced depositor control and transparency in nomination management.

2. Key Provision – Permission for E-Nomination

Under the new framework, banks are permitted to offer e-nomination facilities to their customers only if they comply with specific conditions designed to safeguard depositor interests and ensure procedural integrity.

3. Conditions for Offering E-Nomination Facilities

Banks can enable electronic nomination only if they ensure the following:

• Multiple Nominees Allowed: Depositors must be allowed to nominate up to four individuals, either:

1. 1. Successively (one after another), or
   2. Simultaneously (multiple nominees sharing rights).

• Authentication of Nominations

1. 1. Banks must ensure secure and verifiable authentication of every e-nomination submitted by depositors.
   2. Accepted methods of authentication include:

• • • Electronic signature,
    • Internet banking credentials, or
    • Mobile banking application verification.

• System-Generated Alerts

1. 1. Banks must have a mechanism to alert depositors immediately after every nomination made or updated.
   2. Such alerts can be delivered via SMS, email, or in-app notifications, ensuring real-time confirmation and transparency.

4. Objective of the Rules

The Banking Companies (Nomination) Rules, 2025 seek to:

• Simplify and digitise the process of making or updating nominations,
• Enhance depositor protection through authentication and notification safeguards,
• Prevent disputes and unauthorised changes in nominations, and
• Promote ease of access for customers through digital banking platforms.

5. Implementation and Impact

These rules mark a significant step toward digitally enabled financial governance, allowing depositors to manage nominations seamlessly and securely.

By introducing uniform standards for e-nomination authentication and alerts, the Government aims to ensure trust, accountability, and customer empowerment in the banking system.

6. Conclusion

The Banking Companies (Nomination) Rules, 2025 represent a progressive shift toward paperless, secure, and customer-centric banking operations.

By permitting e-nomination under robust conditions, the framework strengthens both convenience and control for depositors while aligning with India’s ongoing digital financial inclusion initiatives.

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