RBI issues fresh directions to simplify claims for deceased customers, effective November 1

The Reserve Bank of India said on Tuesday that it has issued fresh directions to streamline nomination processes across bank deposit accounts, safe deposit lockers, and articles kept in safe custody—particularly simplifying claims for deceased customers and minimising procedural hardship for the next of kin. 

The Reserve Bank of India (Nomination Facility in Deposit Accounts, Safe Deposit Lockers and Articles kept in Safe Custody with the Banks) Directions, 2025 will come into effect from November 1, 2025, aligning the regulatory framework with the recently notified Banking Laws (Amendment) Act, 2025.

The changes proceed amendments to sections 45ZA, 45ZC, and 45ZE of the Banking Regulation Act, 1949, and the corresponding Banking Companies (Nomination) Rules, 2025, which were notified by the Government earlier this year.

According to the new directions, banks will now be required to inform explicitly customers about the availability and advantages of the nomination facility during the time when an account is opened. They will also be required to offer the option to record a nominee, and highlight how it simplifies fund transfer and claim settlements in the case of the account holder’s death.

If the customer opts out of the nomination process, then the bank must take a written declaration from the customer making this choice, or record the refusal in the records. In the new directions, the RBI has also made it clear that a customer cannot be denied or face a delay in the opening of an account solely because they chose not to nominate someone.

Furthermore, the banks are now required to verify and acknowledge the registration, cancellation, or variation of nominations within three working days of receiving the relevant forms. If a nomination request is rejected, banks are obligated to communicate the reasons in writing within the same timeframe. The status of nomination must be clearly mentioned on the passbook, account statement, or term deposit receipt, along with the name of the nominee, or nominees.

The RBI has also asked banks to undertake awareness campaigns highlighting the importance of nomination. This includes printing messages on cheque books, passbooks, and other customer materials, and conducting periodic drives to educate customers about the facility. It has also repealed old laws—some dating back to 1986—in the process.