New Delhi, Oct 23 (NationPress) The significant provisions related to nomination under the Banking Laws (Amendment) Act, 2025 are set to commence on November 1 of this year, as announced by the Finance Ministry on Thursday.

These provisions will be applicable to nomination facilities for deposit accounts, items held in safe custody, and the contents of safety lockers maintained by banks.

The Act, which received notification on April 15, 2025, encompasses a total of 19 amendments affecting five legislations: the Reserve Bank of India Act, 1934, Banking Regulation Act, 1949, State Bank of India Act, 1955, and the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 and 1980.

The notification indicated that the provisions of the Banking Laws (Amendment) Act, 2025 “will take effect on such date as the Central Government may designate through a notification in the Official Gazette,” with different dates potentially set for various provisions.

Consequently, the Central Government has declared that the provisions in Sections 10, 11, 12, and 13 of the Banking Laws (Amendment) Act, 2025 will be effective from November 1, 2025, according to their statement.

Among the main highlights of these provisions, customers will be allowed to nominate up to four individuals, either simultaneously or successively, thus simplifying the claim settlement process for depositors and their nominees. Depositors can choose between simultaneous or successive nominations, and only successive nominations are allowed for Articles in Safe Custody and Safety Lockers.

Depositors can specify up to four nominees and indicate the share or percentage of entitlement for each, ensuring that the total adds up to 100 percent and enabling transparent distribution among all nominees.

Individuals with deposits, items in safe custody, or lockers can name up to four nominees, with the subsequent nominee becoming active only after the death of the higher-placed nominee, ensuring a seamless settlement process and clarity in succession.

The implementation of these provisions will provide depositors with the flexibility to make nominations according to their preferences while ensuring uniformity, transparency, and efficiency in claim settlement across the banking sector.

The Banking Companies (Nomination) Rules, 2025, which will outline the procedure and forms needed for making, cancelling, or specifying multiple nominations, will be published soon to ensure consistent operation of these provisions across all banks, as stated officially.

The Banking Laws (Amendment) Act, 2025 aims to enhance governance standards within the banking industry, ensure uniform reporting by banks to the Reserve Bank of India, boost depositor and investor protection, elevate audit quality in public sector banks, and promote customer convenience through improved nomination facilities. The Act also addresses the rationalization of the tenure of directors, excluding the Chairman and whole-time directors, in co-operative banks.