The Central Government has notified that key provisions of the Banking Laws (Amendment) Act, 2025, pertaining to nomination in deposits, locker facilities, and safe custody items, will come into effect from November first, two thousand twenty-five. The notification clarifies the updated framework for nominations under the Reserve Bank of India Act, 1934, the Banking Regulation Act, 1949, the State Bank of India Act, 1955, and the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980. The Government highlighted that these amendments aim to expand the scope of nominations, allowing multiple nominees and providing clearer rules on succession and priority.
Section 10 of the 2025 Amending Act modifies Section 45ZA of the Banking Regulation Act, 1949, allowing depositors to nominate up to four individuals, either simultaneously or successively, instead of the earlier provision which permitted only a single nominee. Successive nominations will follow a defined priority, while simultaneous nominations require specification of the percentage share for each nominee.
Section 11 revises Section 45ZC concerning articles left in safe custody with a bank. The amendment now permits nominating up to four persons successively, ensuring clarity in the event of the depositor’s death, thus providing flexibility while maintaining legal safeguards.
Section 12 updates Section 45ZE regarding locker access. Previously, only one nominee could be designated for locker access upon the death of the hirer. The amendment now allows multiple hirers to nominate up to four individuals successively, giving the banking company authority to grant access and allow removal of contents in a structured order.
Finally, Section 13 introduces a new Section 45ZG, detailing the priority mechanism for successive nominationsunder Sections 45ZA, 45ZC, and 45ZE. The first nominee will take effect if alive; otherwise, the next in sequence becomes effective. If no priority is specified, nominees are considered in the order listed in the nomination form. Simultaneous nominations of multiple individuals under Section 45ZA(1) are not governed by Section 45ZG.
These amendments significantly enhance depositor rights by enabling multiple nominations and ensuring legal clarity regarding succession and priority. Banks and depositors now have a structured, legally backed framework for nominations, reducing disputes and aligning banking practices with contemporary needs.
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