Reserve Bank of India (Nomination Facility in Deposit Accounts, Safe Deposit Lockers and Articles kept in Safe Custody with the Banks) Directions, 2025

भारतीय �रज़वर् बैंक RESERVE BANK OF INDIA RBI/2025-26/95 DOR.MCS.REC.59/01.01.003/2025-26 October 28, 2025 Reserve Bank of India (Nomination Facility in Deposit Accounts, Safe Deposit Lockers and Articles kept in Safe Custody with the Banks) Directions, 2025 I. Introduction The nomination facility is intended to facilitate expeditious settlement of claims by banks upon death of a deceased customer and to minimise hardship faced by the family members. The Government of India has notified the Banking Laws

(Amendment) Act, 2025 which inter-alia has amended the Sections 45ZA, 45ZC and 45ZE of the Banking Regulation Act, 1949 (the Act). The Banking Companies

(Nomination) Rules, 2025 have also been notified which along with amended provisions of the Act shall come into force from November 1, 2025. Accordingly, in

order to align the regulatory instructions with the amended provisions of the Banking Regulation Act, 1949 and corresponding Nomination Rules, it has been decided to review the extant instructions on the subject.

II. Preliminary A. Preamble

2. These Directions are issued to provide regulatory instructions to banks to implement the nomination facility and shall be read with sections 45ZA to 45ZG of the Banking Regulation Act, 1949 (and with section 56 of the Act ibid when applied to cooperative banks) and the Nomination Rules framed thereunder.

B. Powers Exercised

3. In exercise of the powers conferred by section 35A of the Banking Regulation Act,1949 (read with section 56 of the Act ibid when applied to cooperative banks), the Reserve Bank of India (hereinafter called the Reserve Bank), being satisfied that it is necessary and expedient in public interest to do so, hereby issues the following Directions.

िविनयमन िवभाग, केंद्रीय कायार्लय, 12वी ंऔर 13वी ंमंिज़ल, केंद्रीय कायार्लय भवन, शहीद भगत िसंह मागर्, मुंबई 400001 टेलीफोन /Tel No: 22601000 फै�/ Fax No: 022-2270 5670, 2260 5671, 5691 2270, 2260 5692 Department of Regulation, Central Office, 12th & 13th Floor, Central Office Building, Shaheed Bhagat Singh Marg, Mumbai – 400001

Tel No: 22601000 Fax No: 022-2270 5670, 2260 5671, 5691 2270, 2260 5692 बैंक िहंदी में पत्राचार का �ागत करता है

Caution: RBI never sends mails, SMSs or makes calls asking for personal information like bank account details, passwords, etc. It never keeps or offers funds to anyone. Please do not respond in any manner to such offers.C. Short Title

4. These Directions shall be called the Reserve Bank of India (Nomination Facility in Deposit Accounts, Safe Deposit Lockers and Articles kept in Safe Custody with the Banks) Directions, 2025.

D. Effective Date

5. These Directions shall come into force with effect from November 1, 2025.

E. Applicability

6. These Directions shall apply to all banks.

F. Definitions

7. In these Directions, unless the context otherwise requires,

(a) ‘Act’ refers to the Banking Regulation Act, 1949.

(b) ‘Bank’ refers to a banking company, corresponding new bank, State Bank of India, Regional Rural Bank and Cooperative Bank, as defined in the Act.

(c) ‘Rules’ refers to the Banking Companies (Nomination) Rules, 2025.

III. Nomination Facility in Deposit Accounts, Safe Deposit Lockers and Articles kept in Safe Custody G. Nomination Facility

8.(1) A bank shall offer nomination facility in deposit accounts in accordance with the provisions of sections 45ZA, 45ZB and 45ZG of the Act (read with section 56 of the Act when applied to cooperative banks) and the Rules.

(2) A bank shall be guided by the provisions of sections 45ZC to 45ZG of the Act (read with section 56 of the Act when applied to cooperative banks) and the Rules in the matter of nomination in safe deposit lockers and articles kept in safe custody.

Explanation: For the purpose of these Directions, it is clarified that if an individual is keeping an account for his/ her proprietorship business, it will be deemed as that individual’s account and the nomination facility shall be offered in such accounts.

H. Option to the customers not to make a nomination

9.(1) At the time of account opening, a bank shall explicitly inform the prospective 2customer of the availability and purpose of the nomination facility and offer him/her the option to avail the same. The bank shall also clearly explain to the prospective customer the advantages of the nomination facility, including but not limited to simplification of the claim process in the event of the account holder’s demise and facilitation of smooth and prompt transfer of funds to the nominee without legal complications.

(2) If the prospective customer chooses not to avail the nomination facility despite being fully informed, the bank shall proceed to open the deposit account without imposing any restrictions, if otherwise found eligible, after obtaining a written declaration from the individual confirming that he/ she does not require the nomination facility at the time of account opening. If he/she refuses to provide the written declaration, the bank shall record the fact of refusal to submit written confirmation in the account opening records.

(3) Under no circumstances shall a prospective customer be denied or delayed in opening an account solely on the ground of refusal to make a nomination, provided all other requirements for account opening are satisfactorily met.

I. Incidental Matters

10. In case of simultaneous nomination, if any nominee dies prior to receiving the deposit from the bank, the nomination in respect of such nominee alone shall become ineffective. Accordingly, a bank shall settle the claims of the amount of deposit made in favour of such nominee in accordance with provisions applicable for accounts without nominee clause as contained in Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025 as amended from time to time.

11. A bank cannot claim a valid discharge under the provisions of the Act if payments are made to individuals based on nomination made under any other law for specified purposes.

12. A bank shall have in place appropriate systems and procedures to register in its books the registration, cancellation and variation of the nomination, as per the request of the customers.

13.(1) A bank shall devise proper systems for acknowledging the receipt of the duly completed forms of registration, cancellation and/ or variation of the nomination.

3(2) A bank shall verify and ensure that the nomination(s) made by its customers are in accordance with relevant provisions of the Act and the Rules before providing acknowledgement to them.

(3) Such acknowledgement shall be given to the customers within three working days of receiving the forms of registration, cancellation and/ or variation of nomination, irrespective of whether the same is asked for by the customers.

(4) Where a nomination request is found not to be in conformity with the provisions of the Act or the Rules and is consequently rejected, the bank shall inform the customer in writing, clearly indicating the reasons for such rejection, within three working days of the receipt of the request form.

J. Details of nomination and name of nominee in Passbook/ Statement of Account and Term Deposit Receipt (TDR)

14.(1) A bank shall record the status regarding registration of nomination on the face of the passbook/ Statement of Account and TDR, with the legend "Nomination Registered".

(2) A bank shall also indicate the name of the Nominee(s) in the Passbook/ Statement of Accounts and TDR in such cases.

K. Customer guidance and publicity of benefits of nomination

15.(1) A bank shall give wide publicity and provide guidance to deposit account holders, locker hirers and depositors of articles in safe custody on the benefits of the nomination facility. This may include printing compatible messages on cheque book, passbook and other literature reaching the customers as well as launching periodical awareness drives.

(2) A bank shall ensure that the form for opening deposit accounts, hiring safe deposit lockers and depositing articles in safe custody contains space for getting the details of nomination, which also serves the purpose of educating the customers about availability of such facility.

IV. Miscellaneous L. Repeal Provisions

16.(1) With the issuance of these Directions, the instructions contained in the circulars mentioned in Annex, issued by the Reserve Bank, shall stand repealed from the 4effective date of these Directions.

(2) Notwithstanding the repeal provisions, anything done or any action taken under the repealed instructions shall be deemed as valid, so long as they were done or taken in conformity with those instructions.

(Veena Srivastava) Chief General Manager 5Annex List of circulars repealed Sl. Circular No. Date Subject No.

1 DBOD.No.Leg.BC.37/ March 21, Banking Laws (Amendment) Act, 1983 C.233A-86 1986 - Section 45ZA to 45ZF of the Banking Regulation Act, 1949 and The Banking Companies (Nomination) Rules, 1985 - Nomination Facilities

(i) Proof of Death of Depositor and

(ii) Claim Format to establish the Identity of the Nominee 2 DBOD.No.Leg.BC.36/ March 21, Banking Companies (Nomination) C.90(H)(D)-86 1986 Rules, 1985 3 DBOD.No.Leg.BC.58. May 14, 1986 Banking Laws (Amendment) Act, 1983 C.233A-86 and Banking Companies (Nomination) Rules, 1985 4 UBD.BR.13/A6-86/87 August 11, Banking Laws (Amendment) Act, 1983 1986 - Sections 45ZA to 45ZF read with

Section 56 of the Banking Regulation Act, 1949 - Co-operative Banks (Nomination) Rules, 1985 - Nomination Facilities 5 DBOD.No.Leg.BC.98/ February 25, Nomination Facilities C.90(H)(D)-88 1988 6 RPCD.No.RF.BC.110/ May 26, 1988 Payment of Balance in the Accounts of D.1-87/98 Deceased Customers to Survivors/ Claimants and Nomination Facilities 7 DBOD.No.Leg.BC.90/ February 28, Working Group on Customer Service C.466(IV)-91 1991 in Banks (Recommendation No. 30) and Popularisation of Nomination Facility 8 UBD.No.POT.19/UB.3 October 06, Committee on Customer Service in 8-92/93 1992 Banks - Implementation of Recommendations 9 RPCD.No.DC.111/07.3 May 12, 1993 S.No. 5, 6 and 7 on ‘Deposit and Other

8.01-92/93 Accounts - Nomination facilities’ in Annexure to the circular on ‘Customer Service’ 10 UBD.No.POT.65/09.39 March 7, 1994 Committee on Customer Service in .00/93-94 Banks – Implementation of Recommendations of the Goiporia Committee - Maintenance of Complaint Book 11 DBOD.No.BC.15/09.08 February 28, Banking Laws (Amendment) Act, 1983 .004/96-97 1997 and Banking Companies (Nomination) Rules, 1985 612 DBOD.BC.No.59/09.07 May 28, 1999 Nomination Facility in Deposit .007/98-99 Accounts 13 UBD.No.BR.32/16.04. June 28, 1999 Nomination Facility in Deposit 00/98-99 Accounts 14 DBOD.No.Leg.5049/09 December 4, Extension of Safe Deposit Locker/ .07.005/2006-07 2006 Safe Custody Article Facility and Access to Safe Deposit Lockers/ Return of Safe Custody Articles by Banks 15 DBOD.No.Leg BC.75/ April 5, 2007 Nomination Facility in Single Deposit

09.07.005/2006-07 Accounts 16 RPCD.CO.RF.BC.No.7 April 12, 2007 Nomination Facility in Single Deposit 0/07.38.01/2006-07 Accounts 17 RPCD.CO.RRB.BC.No April 13, 2007 Nomination Facility in Single Deposit .71/03.05.33/2006-07 Accounts 18 DBOD.No.Leg.BC.78/0 April 17, 2007 Extension of Safe Deposit Locker/

9.07.005/2006-07 Safe Custody Article Facility and Access to Safe Deposit Lockers/ Return of Safe Custody Articles by Banks 19 UBD.CO.BPD.Cir April 19, 2007 Nomination Facility in Single Deposit No.36/ 13.01.000/ Accounts - UCBs 2006-07 20 RPCD.CO.RF.BC May 18, 2007 Extension of Safe Deposit Locker/ No.95/07.38.01/2006- Safe Custody Article Facility and 07 Access to Safe Deposit Lockers/ Return of Safe Custody Articles by Banks 21 UBD.CO.BPD.No.47/1 June 21, 2007 Extension of Safe Deposit Locker/

2.05.001/2006-07 Safe Custody Article Facility and Access to Safe Deposit Lockers/ Return of Safe Custody Articles by Banks 22 DBOD.No.Leg.BC.114/ March 9, 2009 Banking Companies (Nomination)

09.07.005/2008-09 Rules, 1985 - Acknowledgement of Nomination and Indicating the Name of the Nominee in Pass Books/ Fixed Deposit Receipts 23 UBD.CO.BPD.(PCB).C March 12, Co-Operative Banks (Nomination) ir.No.56/09.39.000/200 2009 Rules, 1985- Acknowledgement 8-09 of Nomination and Indicating the Name of the Nominee in Pass Books/ Fixed Deposit Receipts 24 RPCD.CO.RRB.BC.No May 13, 2009 Banking Companies (Nomination) .103/03.05.28-A/2008- Rules, 1985- Acknowledgement 09 11of Nomination and indicating the Name of the Nominee in Pass Books/ Fixed Deposit Receipts 725 DBOD.No.Leg.BC.83/0 March 30, The Banking Companies

9.07.005/2010-11 2011 (Nomination ) Rules, 1985 - Clarifications 26 DBOD.No.Leg.BC.89/0 March 26, The Banking Companies

9.07.005/2011-12 2012 (Nomination ) Rules, 1985 - Clarifications 27 UBD.BPD (PCB) December 3, The Co-operative Banks Cir.No.25/13.01.000/2 2012 (Nomination ) Rules, 1985 - 012-13 Clarifications 28 RPCD.RRB.BC.No.51/ December 12, The Banking Companies

03.05.33/2012-13 2012 (Nomination ) Rules, 1985 - Clarifications 29 RPCD.CO.RCB.BC.No December 24, The Co-operative Banks .53/07.51.010/2012-13 2012 (Nomination ) Rules, 1985 - Clarifications 30 RPCD.CO.RCB.BC.No December 24, The Co-operative Banks .6335/07.51.010/2012- 2012 (Nomination ) Rules, 1985 - 13 Clarifications 31 DOR.LEG.REC/40/09. August 18, Paragraph 5.1: Nomination Facility

07.005/2021-22 2021 8