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The Reserve Bank of India on Wednesday, October 29, announced a new set of rules on bank nominations to make it easier for families to access funds and valuables after the death of an account holder. The revised framework, which comes into effect on November 1, 2025, lays down uniform procedures for deposits, lockers and items held in safe custody. Announcing the move through a notification issued on October 28, the RBI said the new provisions under the Banking Companies (Nomination) Rules, 2025 and the Banking Laws (Amendment) Act, 2025 replace 31 earlier circulars to bring greater consistency and clarity across banks.

As per the revised rules, every bank will now be required to offer the nomination facility to customers at the time of opening deposit accounts, lockers or safe custody services. The RBI stated that banks must clearly explain the benefits and purpose of having a nominee, such as enabling quick access to funds or belongings in case of the depositor’s death. The central bank said the goal is to minimise procedural delays and ensure that rightful heirs receive their dues promptly.

The central bank has clarified that while every customer must be offered the nomination facility, choosing one is entirely voluntary. Those who decide not to name a nominee will need to give a written declaration confirming their choice. If a customer refuses to sign such a declaration, banks are required to record the refusal in their internal records. The RBI has made it clear that no bank can delay or deny account opening merely because a customer opts out of the nomination facility, as long as all other conditions for opening the account are met.

The new guidelines set a strict three-day timeline for all nomination-related requests. Banks must register, modify or cancel nominations within three working days of receiving the customer’s form. In case a form is incomplete or has errors, the bank must inform the customer in writing within three days, clearly stating the reason for rejection. The RBI said the provision is aimed at enhancing efficiency, transparency and customer trust.

Banks will now be required to display the status of nomination registration directly on passbooks, term deposit receipts and account statements. The label “Nomination Registered” must be printed, along with the nominee’s name, to ensure clarity for customers and their families. Additionally, the RBI has directed banks to raise awareness among customers about the nomination facility and its importance.

A key feature of the new framework is that it will now also apply to proprietorship accounts, ensuring that small business owners receive the same level of protection and clarity as individual customers.

Ankit Kumar is a Senior Sub Editor at Zee Business. He covers international affairs, politics, climate change, business, finance and global elections. With experience acros