RBI Issues Directions to Simplify Nomination and Claim Procedures in Banks

Circular no. RBI/2025-26/95 DOR.MCS.REC.59/01.01.003/2025-26; Dated: 28.10.2025

1. Background

The Reserve Bank of India (RBI) has issued the RBI (Nomination Facility in Deposit Accounts, Safe Deposit Lockers, and Articles Kept in Safe Custody with Banks) Directions, 2025, which will come into effect from 1 November 2025.

These directions consolidate and update existing instructions to ensure that customers are aware of, encouraged to use, and properly assisted in availing the nomination facility, thereby improving the ease of claim settlement for nominees in case of contingencies.

2. Applicability and Scope

The directions apply to all scheduled commercial banks, including small finance banks, payments banks, and regional rural banks, and cover:

• Deposit accounts,
• Safe deposit lockers, and
• Articles kept in safe custody with banks.

The framework standardises the procedure for offering, registering, and acknowledging nominations, as well as for handling modifications and cancellations.

3. Key Provisions of the Directions

3.1 Informing Customers About the Nomination Facility

• At the time of account opening or locker allotment, banks must inform customers about:

1. 1. The availability,
   2. The purpose, and
   3. The benefits of the nomination facility.

• Customers must be offered the option to make a nomination at that time.
• If a customer chooses not to avail of the nomination facility, the bank must obtain a written declaration from the customer to that effect before proceeding with account opening or locker allotment.

3.2 Acknowledgement and Record Management

• Banks must devise proper systems to acknowledge the receipt of duly completed forms relating to:

1. 1. Registration of nomination,
   2. Cancellation, and/or
   3. Variation of nomination.

• Such acknowledgements should be issued promptly and systematically, ensuring an auditable record for both the bank and the customer.
• Before issuing the acknowledgement, banks must verify and confirm that the nomination is made in accordance with the relevant provisions of the Banking Regulation Act, RBI guidelines, and the applicable Nomination Rules.

3.3 Publicity and Customer Awareness

• Banks are required to widely publicise the benefits of the nomination facility among:

1. 1. Deposit account holders,
   2. Locker hirers, and
   3. Depositors of articles in safe custody.

• Awareness initiatives may include:

1. 1. Printing informative messages on cheque books, passbooks, deposit receipts, and other customer-facing materials;
   2. Displaying guidance posters at branches; and
   3. Conducting periodic awareness campaigns through digital and offline channels.

4. Objective of the Directions

The Directions aim to:

• Simplify and standardise the nomination process,
• Encourage greater adoption of the facility among banking customers,
• Reduce delays and disputes in claim settlements, and
• Promote financial inclusion and customer protection through proactive awareness and documentation practices.

5. Effective Date

The RBI (Nomination Facility in Deposit Accounts, Safe Deposit Lockers, and Articles Kept in Safe Custody with Banks) Directions, 2025 will come into force on 1 November 2025.

Banks must ensure complete system readiness and staff training before this date to comply with the new procedural requirements.

6. Conclusion

The new Directions mark a significant step toward streamlining nomination processes across the banking sector.

By mandating clear communication, documentation, verification, and public awareness, the RBI aims to ensure that the nomination facility becomes a universal and effective safeguard for depositors, locker holders, and their nominees.

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