Nomination Facility

Overview

The Government of India has notified the Banking Laws (Amendment) Act, 2025 which, inter-alia, amends Sections 45ZA, 45ZC and 45ZE of the Banking Regulation Act, 1949. The Banking Companies (Nomination) Rules, 2025 have also been notified and — together with the amended provisions of the Act — shall come into force from November 1, 2025. The regulatory instructions below align with the amended Act and the Nomination Rules, 2025.

Rules for Nomination

Nomination Facility is available on all deposit accounts, safe deposit locker / safe custody article and deposits held in the name of a sole proprietary concern. Nominations are made only in respect of deposits which are held in the individual capacity of the depositor and not in any representative capacity (for example, as a holder of an office). A nomination cannot be made on a HUF account.

1. Successive or Simultaneous nomination has been introduced as described below.

(A) Successive Nomination

Where the nomination is made successively in favour of more than one person, the nomination shall be effective only in favour of one person in the order of priority specified. (If 'Successive Nomination' is selected, more than one nominee will be allowed with each having 100% share). If the nomination is made in favour of more than one person successively, the nomination shall be effective only in favour of one person in the following order of priority, namely:

• nomination of the first nominee shall be effective if that nominee survives the person or persons who made the nomination;
• nomination of the second nominee shall become effective only after the death of the first nominee;
• nomination of any nominee lower in the order of nomination shall become effective only after the death of all the nominees whose names are higher in the order of nomination.

Where the order of nomination is not mentioned, persons shall be deemed to have been nominated in the order in which their names appear in the nomination.

(B) Simultaneous Nomination

Where the nomination is made simultaneously in favour of more than one person, the nomination shall be effective in favour of all such persons in proportion to which it is declared, subject to the following terms and conditions:

• the nomination shall not be made in favour of more than four persons;
• the nomination shall explicitly state the proportion of amount of deposit in percentage in favour of each nominee;
• the nomination shall be made in respect of the whole amount of deposit;
• if any nominee dies before receiving deposit from the banking company, the nomination in respect of such nominee alone shall become ineffective and the amount of deposit purported to be nominated in favour of deceased nominee shall be treated as if nomination had not been made in respect of that portion of deposit.

(C) Choice of mode

Either Simultaneous or Successive nominations is allowed for deposit accounts.

(D) Safe custody lockers / articles

Successive nomination is applicable for Safe Custody Articles / Safe Deposit Lockers.

Separate nominations for Savings Bank account and Pension account

Nomination facility is available for Savings Bank Accounts opened for credit of pension. The Banking Companies (Nomination) Rules, 2025 are distinct from the Arrears of Pension (Nomination) Rules, 1983. A nomination exercised by the pensioner under the 1983 Rules for receipt of arrears of pension will not be valid for deposit accounts held by the pensioner with banks. A separate nomination under the Banking Companies (Nomination) Rules, 2025 is necessary if the pensioner desires to avail the nomination facility for deposit accounts.

Process of Registration of Nomination

Registration of Nomination through Branch: Download the Form → fill the details → submit to Home Branch.