Revamped Banking Nominations Set to Streamline Claims

Starting November 1, 2025, under the Banking Laws (Amendment) Act, customers can nominate up to four individuals in bank accounts, simplifying claims and enhancing transparency. The Act aims to promote uniformity and efficiency in the banking system while strengthening governance and audit standards in public sector banks.

Starting next month, bank customers can designate up to four nominees in their accounts, a move designed to ensure efficiency and uniformity in claim settlements throughout the banking system.

The Banking Laws (Amendment) Act, 2025, which will be enforced from November 1, is a comprehensive legislation affecting five existing acts and contains 19 amendments. It notably allows simultaneous or successive nominations by depositors, enhancing transparency and ensuring a smooth distribution of entitlements.

The finance ministry highlighted further improvements such as increased director tenures in cooperative banks and alignment of audit practices in public sector banks. These changes aim to bolster governance standards and depositor protection while enhancing customer convenience and operational coherence across the banking sector.