RBI has issued fresh directions on nomination facilities across bank deposits, lockers and safe custody articles, mandating clear timelines, acknowledgements and transparency requirements for all banks.

RBI issues new norms for nomination in bank accounts, lockers and safe custody

CNBCTV18·author

Published Oct 28, 2025 | 12:10 PM GMT-04

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The Reserve Bank of India (RBI) on Tuesday issued comprehensive norms governing nomination facilities in bank accounts, safe deposit lockers and articles held in safe custody.

The new guidelines, titled “Nomination Facility in Deposit Accounts, Safe Deposit Lockers and Articles kept in Safe Custody with Banks) Directions, 2025”, will come into effect from November 1, 2025.

Under the new rules, all banks — including cooperative and rural banks — must offer nomination facilities for deposits, lockers and items held in safe custody. Customers may also choose to opt out of nomination through a written declaration, and such refusal cannot delay account opening, the RBI said.

Banks are required to acknowledge receipt of nomination forms within three working days and mark “Nomination Registered” on passbooks and term deposit receipts.

The names of nominees must be recorded in account records for greater transparency. Additionally, banks must launch awareness campaigns to educate customers on the benefits of nomination.

The RBI has also directed banks to set up systems allowing customers to register, cancel or modify nominations and to provide written acknowledgements promptly.

If a nomination request is rejected due to non-compliance with laws or rules, the bank must inform the customer in writing within three working days, explaining the reason for rejection.

In cases involving multiple nominations, if a nominee dies before receiving the deposit, the nomination for that individual will lapse.

These directions follow the central bank’s earlier revision of claim settlement norms for deceased customers, which require banks to settle claims within 15 days and compensate nominees for delays.

A valid nomination or survivorship clause allows banks to discharge liability by releasing funds to the nominee or survivor upon the depositor’s death, as per RBI rules.

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