October 28
Any change or cancellation of a nomination on bank deposit accounts requires the consent of all account holders. This is part of the set of rules notified by the Ministry of Finance for more than one nominee for deposit accounts and lockers. There could soon be four nominees for deposit accounts and bank lockers.
On October 23, the ministry said that with effect from November 1, Sections 10, 11, 12 and 13 of the Bill amending the Banking Laws and relating to nomination facilities in respect of deposit accounts, articles kept in safe custody and contents of safe deposit boxes maintained in banks will be made operational. Now the ministry has announced rules to implement these standards.
The maximum number of nominees can be 4 from November 1
“In case of a deposit in the name of more than one depositor, the cancellation or modification of a nomination will not be valid unless it is made by all the depositors,” the rules said. Further, the nomination will be made only in respect of deposits held in the individual capacity of the depositor and not in a representative capacity as an office holder or otherwise.
“If the nominee is a minor, the depositor or, as the case may be, all the depositors together, may, while making the nomination, appoint another person who is not a minor, to receive the amount of deposit on behalf of the nominee in the event of the death of the depositor or, as the case may be, all the depositors during the minority of the nominee,” the rules say. Also in the case of a deposit in the name of a minor, the nomination will be made by a person who is lawfully entitled to act on behalf of the minor.
“If a nomination is made inadvertently or otherwise in the Nomination Form in favor of more than four persons, the names of the first four persons appearing in the order shall be recognised,” the rules clarified.
According to officials, the higher number of nominees for depositors’ money is aimed at reducing unclaimed deposits in banks. As of June 30, 2025, public sector banks are saddled with unclaimed deposits of ₹58,330.26 crore, while the private sector has ₹8,673.72 crore, according to the Reserve Bank of India. Balances in savings/current accounts that have not been used for 10 years, or time deposits that have not been claimed within 10 years of the maturity date, are classified as ‘unclaimed deposits’. This can happen for several reasons, including the death of the primary holder and no trace of the nominee.
These amounts are transferred by banks to the Depositor Education and Awareness (DEA) Fund managed by the Reserve Bank of India. However, the depositors still have the right to claim the deposits at a later date from the bank(s) where these deposits were held, along with interest, if applicable.
For objects in safe deposit boxes or with regard to security safes, the nomination that an individual must make for objects deposited with a banking company is for the benefit of one or more persons of a maximum of four consecutively. Nomination can be done through the physical mode or through the electronic mode.
Published on October 28, 2025
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