Major Banking Changes Effective from November 1: New Rules to Bring More Security and Transparency

Big Change Coming for Bank Account Holders

From November 1, 2025, significant new rules are set to take effect across Indian banks that could directly impact account holders and locker users. These changes, introduced under the Banking Law (Amendment) Act, 2025, aim to make the system more transparent, secure, and customer-friendly.

One of the biggest updates is that customers can now nominate up to four individuals for their bank accounts — double the previous limit of two. This expanded nomination facility gives account holders greater flexibility and control over their funds and assets, particularly in case of unforeseen circumstances.

Nominee Details Now Mandatory

Under the new rules, banks will now be required to record each nominee’s email ID and mobile number. This step is designed to make the claim settlement process faster, more accurate, and traceable.

Previously, banks often faced difficulties in locating or verifying nominees during claim settlements. With verified contact details in the system, banks can now notify nominees promptly in the event of the account holder’s demise or any other critical situation. This will reduce delays and disputes while ensuring that funds reach the rightful beneficiaries on time.

According to the Reserve Bank of India (RBI), this reform will not only strengthen the security of depositor funds but also increase accountability and transparency within the banking system.

Objective Behind the New Rules

The primary purpose of these reforms is to make the entire nomination and claim settlement process more organized and transparent. By allowing multiple nominees and mandating their verified contact details, the RBI seeks to:

• Simplify inheritance and fund transfer processes.

• Prevent unauthorized claims or disputes.

• Ensure timely payouts to rightful claimants.

• Improve data tracking and communication between banks and customers.

This marks a crucial step toward digitizing and modernizing customer data management in the banking sector.

More Flexibility and Security for Customers

The new nomination rules give customers the freedom to nominate family members, friends, or any trusted individuals. This is especially helpful for people who have multiple bank accounts or significant deposits spread across different banks.

In case of disputes or unauthorized access, having up to four registered nominees makes it easier for banks to verify rightful ownership and release funds without legal complications.

Additionally, customers can also specify how the amount should be divided among the nominees, giving them complete control over their financial legacy.

Impact on Banking Experience

With these rules coming into force, banks are expected to revise their account opening and updating procedures. Customers may be asked to reconfirm or update nominee details to comply with the new requirements.

Bank officials suggest that this measure will enhance overall system efficiency, prevent fraudulent claims, and reduce pending dispute cases related to deceased account holders.

Moreover, locker users are likely to benefit as similar transparency measures are being extended to locker facilities, ensuring that access rights are clear and verifiable.

A Step Toward Safer and Smarter Banking

The new framework reflects India’s growing emphasis on customer protection and digital accountability in financial institutions. By making nominee information more comprehensive and contact-based, banks can ensure smoother coordination and quicker resolutions in case of emergencies.

For customers, this means:
✅ Greater control over bank accounts and deposits.
✅ Better protection of funds and assets.
✅ Simplified and transparent claim process.
✅ Reduced risk of disputes and fraud.

Final Takeaway

As these new banking rules take effect from November 1, 2025, customers are advised to review and update their nominee details with their respective banks to avoid any future complications.

This reform may seem procedural, but it represents a major stride toward a more secure, transparent, and efficient banking system. With multiple nominees and verified digital records, account holders can now safeguard their money — and their peace of mind — like never before.