New Bank Rule: November is going to start with a big change. A new rule related to bank accounts is going to come into effect from November 1, 2025, which has been approved by the Finance Ministry. Till now we could add only one nominee in our bank account, so that only he would be entitled to our deposits or locker after us. However, now under the new rule you will be able to add four nominees simultaneously.

This means that now you can make four people from your family or close ones the beneficiaries of your account or locker. This change has been made under the Banking Laws (Amendment) Act 2025, which was notified on 15 April 2025 and will come into effect across the country from 1 November. In such a situation, let us know how you can set 4 nominees on the money deposited in the bank.

What is the new rule?

Earlier, only one nominee could be added to a bank account, but now according to the new rules of the Finance Ministry, a bank account holder can add up to four nominees. You can decide which nominee will get what percentage of share. If you want, you can give equal share to everyone or give more to one and less to others. Nominees can be changed or canceled at any time. There will also be a facility of Successive Nominee, that is, if the first nominee is no more, then the second nominee will himself become entitled to it. At the same time, if you have a bank locker or safe deposit, then new rules will be applicable for that also. Here only successive nominees can be made i.e. the next nominee will be entitled only after the death of the first nominee. The account holder can choose up to four nominees and distribute their stake up to 100 percent.

How to set 4 nominees on the money deposited in the bank, complete process

1. Update your bank account information – First of all, check the basic information of your bank account. Like whether the name is correct or not, whether the mobile number and email are updated or not, whether Aadhaar and PAN are linked or not because the bank verifies this information before adding the nominee.

2. Go to bank branch or net banking – How to set 4 nominees on the money deposited in the bank: You have two methods. In which first go to the nearest branch of the bank and fill the Nomination Update Form and second, if your bank provides this facility, then you can add a new nominee by going to the Nominee section through net banking or mobile app.

3. Fill the complete information of the nominee – You will have to give information about the nominee. Like full name, date of birth, address, bank account number, share percentage. If four nominees are being added, then the percentage of share of each should be 100 percent in total.

4. Select the option of successive or simultaneous nomination – Now decide whether the nominees will be sequential or simultaneous. If you want all the nominees to get the share together, then choose Joint Nomination. If you want that one person should get the rights one after the other, then choose the option of Successive Nomination.

5. Submit the form to the bank and get confirmation – After filling the offline form, the bank officer will check your documents and enter them in the system. On updating online, you will get information through SMS or email.

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Nominee Rights: Often people think that if a person’s name is registered as a nominee in a bank account, insurance policy or investment. So after the death of that person, the entire amount goes directly to the nominee. Many people assume that the nominee becomes the real owner of that money. But in reality it is not so.

The name of the nominee only tells who will be given the responsibility of the money first. So that the amount can reach the rightful heirs. That means the role of the nominee is only that of a trustee i.e. representative. Not the owner’s. Let us tell you what are the rules and regulations regarding this.

Does the nominee get the full amount?

The nominee is legally considered a trustee, that is, he is only responsible for delivering the amount or property to the real heirs. For example, if the nominee’s name is registered in any bank account, insurance policy or fixed deposit. So after the death of the person, the institution first hands over the amount to the nominee. But this does not mean that the money belongs only to him. If someone else has the right in the will or under succession law. So that person can make a claim in the court and the amount will be given to him.

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Different rules in different places

The rules regarding nominee are different in every financial institution. The nominee has the right to withdraw only the amount in bank accounts and fixed deposits. But not ownership rights. If the same person is also registered as beneficiary in the insurance policy.

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So he can get the full amount. In case of mutual fund or share investment, the amount is given to the nominee temporarily. But later the real heir can make a claim with legal documents. Therefore, it is important to know how much rights the nominee has in every investment.

Why is it important to choose the right nominee?

Often people do not think much while filling the name of the nominee or enter the name of a relative in a hurry. But this small mistake can become a cause of dispute among the family in future. The nominee should be the one on whom there is full confidence that he will deliver the amount to the rightful beneficiaries. This will neither delay the distribution of money nor increase legal complications for the family.

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Ppf account: There has been a lot of relief news for Public Provident Fund (PPF) account holders. The government has made the service free of updating or modifying nominee details to PPF Account. This will make it very easy for those who make small savings. Finance Minister Nirmala Sitharaman announced this on Thursday.

According to the Finance Minister, I have recently received the news of fees from financial institutions to update or modify the nominee details in PPF account. He said that necessary changes have been made in the Government Savings Promotion General Rules 2018 through the Gazette notification of April 2, 2025 to remove any fee related to updating the details of persons enrolled in PPF accounts.

Recently was informed that a fee was being Levied by Financial Institutions for Updating/Modifying Nominee Details in PPF Accounts.

Necessary changes are now made in the government saving promotion general rules 2018 via gazette notification 02/4/25 to remove Any Charges on… pic.twitter.com/hi33sbln4e

– Nirmala Sitharaman (@NSITHARAMAN) April 3, 2025

Now four people will be able to make nominee

In the Gazette notification, a fee of Rs 50 has been abolished for canceling or changing enrollment for small savings schemes run by the government. He said, the recently passed Banking Amendment Bill 2025 is allowed to make maximum four people nominees for payment of money, goods kept in safe custody and safety locker.

Let us know that in the Lok Sabha on Tuesday, the bank account holder has been allowed to make four people in his account in the Banking Law (Amendment), Bill, 2024. Due to this, deposits will have an option to make 4 people a nominee at all times or one after another. Along with this, customers taking lockers in the bank will have only the option of gradual enrollment so that the money deposited in the absence of the nominee can be transferred correctly.

Family interest will be protected

According to the earlier rules, if a person wanted to make his two children and his elderly mother a nominee of her PPF account and safety locker, then she also had to pay fees to update the nominee details and the number of nominees was also limited. With this, along with the long legal dispute, the right beneficiaries also missed many times unknowingly. With the recent changes, now three people will be able to make three people without any charge. This will not only protect the interests of the family, but will also make the process of property planning easier.

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