Reserve Bank of India (Nomination Facility in Deposit Accounts, Safe Deposit Lockers and Articles kept in Safe Custody with the Banks) Directions, 2025
The Reserve Bank of India (RBI) issued these Directions to align regulatory instructions with the amended provisions of the Banking Regulation Act, 1949 and the Banking Companies (Nomination) Rules, 2025, both effective from November 1, 2025. The main objective is to facilitate quicker settlement of claims upon the death of a customer and to reduce hardship for their family members by strengthening the nomination process.
These Directions, issued under Section 35A of the Banking Regulation Act, apply to all banks, including the State Bank of India, corresponding new banks, Regional Rural Banks, and Cooperative Banks. The provisions cover nomination in deposit accounts, safe deposit lockers, and articles kept in safe custody. For individual proprietorship accounts, the nomination facility is also applicable, treating them as personal accounts.
Banks are required to offer nomination facilities at the time of opening deposit accounts and to clearly explain their purpose and benefits, such as simplifying the claim process and enabling smooth transfer of funds to the nominee without legal complications. Customers may choose not to nominate, but banks must obtain a written declaration or record the refusal in their records. Importantly, no account opening should be denied or delayed solely because the customer declines to make a nomination.
In the event that a nominee predeceases the account holder, the nomination for that person becomes ineffective, and the claim should be processed as per the Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025. Banks must ensure that nominations comply with legal provisions and maintain systems for registering, cancelling, or varying nominations. Acknowledgements for nomination-related forms must be issued within three working days, and any rejection must be communicated in writing, stating reasons within the same period.
Banks must mark “Nomination Registered” on the face of passbooks, statements of account, or term deposit receipts and include the name of the nominee where applicable. They are also directed to promote awareness among customers about the benefits of nomination through printed materials, cheque books, passbooks, and periodic publicity drives. Account opening and locker forms must have dedicated space for nomination details.
Finally, with effect from November 1, 2025, all previous circulars on the subject stand repealed. However, actions taken under the repealed instructions will continue to remain valid if performed in accordance with those earlier guidelines.
