Up to 4 Nominees in Your Bank Account? What RBI’s 2025 Circular Means for Your Legacy

The Reserve Bank of India (RBI) recently issued a landmark circular (dated October 28, 2025) introducing the facility for bank customers to appoint up to four nominees for their deposit accounts, fixed deposits (FDs), and safe deposit lockers.

Effective from November 1, 2025, this regulatory change under the Banking Laws (Amendment) Act, 2025, aims to simplify claim settlements and offer greater clarity in the transfer of funds and assets upon a customer’s demise.

What Does the New RBI Nomination Rule Mean?

Traditionally, bank accounts and FDs allowed only a single nominee, limiting flexibility and often complicating inheritance procedures, especially in households with multiple heirs. The new provisions enable customers to nominate up to four individuals simultaneously or successively. This flexibility means claim settlements will be faster and less prone to legal disputes.

Nominee is a Minor? Here’s What You Need to Know

If the nominee is a minor, the account holder must appoint an appointee or guardian to receive the funds or assets on the minor’s behalf until they reach legal adulthood. The nomination form will record the appointee’s details, safeguarding the minor nominee’s interests and ensuring smooth claim settlement without legal hurdles. This added layer reflects RBI’s commitment to protecting all beneficiaries, irrespective of age.

Key Terms Explained

• Nominee: A person or persons appointed by the account holder to receive the balance or assets upon their death.
• Simultaneous Nomination: Multiple nominees appointed at the same time, sharing the claim.
• Successive Nomination: Nominees appointed one after another, say if one nominee can no longer claim.
• Deposit Accounts: Savings accounts, current accounts, recurring deposits, and fixed deposits eligible for nomination.
• Safe Deposit Lockers: Lockers or safe custody articles at banks where nominees can be designated for access or claims.

Importance of Updating Nominees

Nomination is an important part of estate planning, ensuring your assets pass smoothly to your chosen beneficiaries without lengthy legal complications. Here’s why keeping nominee details up-to-date is critical:

• Quick Settlement: On the death of the account holder, banks can directly transfer funds or assets to nominated individuals, expediting settlement.
• Avoids Legal Hassles: Helps family members avoid cumbersome court procedures to prove inheritance rights.
• Reflects Current Wishes: Family dynamics and relationships change; nomination updating ensures your current wishes are honored.
• Multiple Nominees: With up to four nominees allowed, you can provide for all your heirs, reducing conflicts.

What Does “Nomination Registered” Mean?

After you submit your nomination details, banks will mark your passbook, account statements, and fixed deposit receipts with the text “Nomination Registered.” This official confirmation from the bank assures you and your family that your nominations are recorded, acknowledged within three working days, and ready to expedite claims in the event of your passing.

Nomination vs. Will: What’s the Difference?

While a nomination allows banks to transfer funds to nominees quickly, it does not override a Will or legal inheritance rights. A Will is a comprehensive legal document specifying the detailed distribution of your entire estate, including non-bank assets. Nomination is limited to bank-held finances or locker contents.

However, nomination is a crucial tool for efficient estate planning, functioning as a first step in protecting your family’s financial security. Proper nomination avoids unnecessary delays and hardships during an already difficult time.

Impact of the RBI Circular on Estate Planning

This important regulatory change is a win for customers wanting to streamline their estate planning. The ability to nominate multiple individuals formally acknowledges family complexities and diverse asset distribution needs.

From an estate planning perspective:

• It reduces family disputes over bank assets.
• Allows you to align bank accounts and lockers closely with your overall inheritance plan.
• Works in tandem with your Will to provide clarity and legal backing to your asset distribution.
• Enables banks to update nomination details transparently with acknowledgement within 3 working days.

Conclusion

The RBI’s new nomination rules represent a significant upgrade in India’s banking and estate planning framework. If you haven’t reviewed your nominee details recently, now is the time to update and optimize your estate plan by leveraging the option to add up to four nominees across your accounts and lockers. This ensures your legacy is protected, claims are settled quickly, and your family experiences fewer complications during emotional times.