The Reserve Bank of India issued new directions setting out how banks must implement the nomination facility for deposit accounts, safe deposit lockers and articles kept in safe custody, aligning RBI instructions with amendments under the Banking Laws (Amendment) Act, 2025 and the Banking Companies (Nomination) Rules, 2025. The directions apply to all banks and require nomination to be offered in line with the amended Banking Regulation Act provisions and the new rules, including for accounts held by individuals for proprietorship businesses (treated as individual accounts for this purpose). Banks must explicitly inform customers at account opening about the availability and purpose of nomination and offer the option to nominate; if a customer declines, the bank must still open the account (if otherwise eligible) and obtain a written declaration, or record the refusal to provide one. Operationally, banks must maintain systems to register, cancel and vary nominations, acknowledge receipt of nomination-related forms within three working days, and inform customers in writing within three working days if a request is rejected for non-conformity with the Act or rules. Passbooks, statements of account and term deposit receipts must show nomination status with the legend "Nomination Registered" and, where applicable, the nominee’s name. Where there is simultaneous nomination and a nominee dies before receiving the deposit, the nomination for that nominee becomes ineffective and settlement must follow the framework for accounts without nomination under the Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025. The directions take effect from 1 November 2025 and repeal a wide set of earlier RBI circulars on nomination facilities from that date, while preserving the validity of actions taken under the repealed instructions if they complied with those instructions.

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