Now, you can add 4 nominees for bank accounts
What's the story
In a major move to improve financial asset management and reduce unclaimed deposits, the Rajya Sabha has passed the Banking Laws (Amendment) Bill.
The legislation enables bank account holders to appoint up to four nominees instead of one.
The amendment provides two methods of nomination—simultaneous and successive—to simplify fund transfer processes.
Nomination explained
Understanding the new nomination methods
The simultaneous nomination method enables account holders to allocate certain percentages of their deposits among several nominees.
For example, if an account has ₹10 lakh with three nominees with a 40:30:30 split, the money will be divided like this: ₹4 lakh to the first nominee and ₹3 lakh each to the others.
Successive nominations establish a priority sequence for fund transfers. If the primary nominee, A, is unavailable, the funds will be directed to B.
Locker regulations
New rules for bank lockers under the amendment
The Banking Laws (Amendment) Bill also amends nomination rules for bank lockers.
While both nomination methods are allowed for deposit accounts, only successive nominations are allowed for lockers.
This amendment is expected to simplify access to funds for families and reduce legal complexities, thus easing the administrative burden on banks by clarifying nominee rights and minimizing disputes.