One of the biggest steps towards the financial inclusion of the masses and the facilitation of later succession has been made by the Reserve Bank of India (RBI) with the unveiling of the Nomination Facility in Deposit Accounts Directions, 2025. The regulatory framework, which took complete effect as of November 1, 2025, marks to be one of the most significant changes to the Banking Regulation Act in decades. The issue of unclaimed deposits, which has been growing dramatically and reached over ₹67,000 crores by the early part of this year, is the main problem that needs to be solved. The RBI wants to make it clear that the legal heirs need to experience very few obstacles when it comes to accessing the funds of a deceased loved one.
Transition to a Multi-Nominee Framework
What stands out the most among updates is the shift from a single-nominee system to a multi-nominee structure. In the past, depositors were rarely allowed to name more than one person. The new rule allows the customers to make four nominations for their deposit account, safe custody articles, and locker under the 2025 directions. This is of great advantage to parents who have multiple kids as they are able to indicate proportionate shares( like 25% each) for their children, thus making it a just and non-contentious distribution of assets.
Simultaneous vs. Successive Bank Nomination Methods
There are two methods set by the Reserve Bank of India to handle the multiple nominees: Simultaneous Nomination and Successive Nomination. Simultaneous nomination is allowed for deposit accounts where all the nominated persons have either the same or a specified right to the money at the same time. In contrast, the successive nomination is meant mainly for the case of the bank locker and safety deposits. The second nominee comes into the picture only when the first nominee has passed away thereby forming a clear “line of succession” with no legal issues.
Compliance Mandates and Financial Transparency
For the purpose of compliance, the Reserve Bank of India has now made it a rule that banks have to provide acknowledgments for any request related to nomination within a time frame of three working days. Additionally, banks have to put the label “Nomination Registered” on the top of the passbooks and account statements. Although a customer has the option to not assign anyone, the bank is obliged to get a written statement of this refusal, and no bank has the right to refuse to open an account just because a customer has chosen not to make a nomination. It is anticipated that these changes in policy will greatly diminish the workload of banks and the psychological stress of families, thus making the banking system more open in terms of finances.