The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Nomination Facility in Deposit Accounts, Safe Deposit Lockers and Articles kept in Safe Custody with the Banks) Directions, 2025, which will come into effect from November 1, 2025.
The new Directions align regulatory norms with the recently amended provisions of the Banking Regulation Act, 1949 and the Banking Companies (Nomination) Rules, 2025, notified by the Government of India earlier this year. The move aims to ensure swift and hassle-free settlement of claims in the event of a customer’s death, reducing hardships for family members.
Importantly, the Directions explicitly apply to cooperative banks, as per Section 56 of the Act. Cooperative banks are required to offer a nomination facility across all deposit accounts, lockers, and safe custody articles, and must register or update nomination details within three working days of receiving customer requests.
RBI has also directed banks to create awareness campaigns to educate depositors about the benefits of nomination and to indicate nominee details clearly on passbooks and deposit receipts.
These updated norms replace earlier circulars and mark a significant step toward enhanced transparency and customer protection within the cooperative banking sector.