Date:- 22.10.2025
Gazette No.:- REGD. No. D. L.-33004/99
The Central Government, through the Ministry of Finance, has issued a notification stating that few key provisions of the Banking Laws (Amendment) Act, 2025 [2025 Amending Act]― relating to nomination, shall come into effect on November 1, 2025.
- Earlier, a depositor could nominate only one person for their bank deposits. Now, the amendment allows up to four nominees, either successively or simultaneously, under Section 45ZA of the Banking Regulation Act.
- A new Section 45ZA(1A) provides that when nominations are made successively, only one nominee will be valid at a time, following a fixed order of priority under the newly inserted Section 45ZG.
- Another new sub-section, 45ZA(1B), permits simultaneous nominations in favour of up to four persons, provided the depositor clearly mentions the percentage share of each nominee.
- Section 45ZC(1) has also been amended. Now, a person who keeps articles in safe custody with a bank can nominate up to four persons successively to receive those articles after their death.
- Section 45ZE(1), which deals with locker facilities, has been widened. Now, one or more individuals who hire a locker can nominate up to four persons successively to access and remove the contents in the event of their death.
- A new Section 45ZG lays down a clear order of priority for successive nominations. The first nominee’s right becomes effective if they survive the depositor; if not, the second nominee becomes effective, and so on. If no specific priority order is mentioned, the nominees will be treated in the same order in which their names appear on the nomination form. The priority rule under Section 45ZG will not apply when nominations are made simultaneously for more than one person under Section 45ZA(1).
