Explainer: Simultaneous or Successive Nominations! What are the benefits of having four nominees in your bank account?

Starting November 1st of this year, up to four nominees can be made for bank deposit accounts and lockers, instead of just one. The Finance Ministry announced on Thursday that the nomination provisions under the Banking Laws (Amendment) Act 2025 will come into effect on November 1st. This will allow account holders to nominate as many people as they wish and will also ease claim settlement issues.

Starting November 1st, bank customers will be able to nominate up to four people simultaneously or in succession. In simultaneous nomination, depositors can nominate up to four nominees and indicate the share they wish to give to each nominee. This will prevent disputes. In successive nominations, up to four nominees can be made. However, in this case, if the account holder is no longer alive, the property will be transferred to the first nominee. In the event of their death, the property will pass to the second, and so on.

Account Nominee Rule: No family disputes over bank deposits; this rule will change from November 1st. Learn how to benefit.

Legal Heir
However, it is also clear that a nominee need not necessarily be a legal heir. Heirs are determined by other legal rules. In the case of safe custody and safety lockers, only successive nominations will be available.

The Ministry stated, "The implementation of these provisions will facilitate depositors in making nominations of their choice, and will also ensure uniformity and transparency in claim settlements across the banking system." The Ministry stated that the Banking Companies (Nomination) Rules 2025 specify the procedures for making and canceling multiple nominations. These will be published in due course, ensuring uniform application across all banks.

Difference between Simultaneous and Successive Nomination
In a simultaneous nomination, if more than one nominee dies before the account holder's death and the nomination remains unchanged, the deceased nominee's share is proportionately distributed among the remaining nominees. If a nominee dies while the account holder is alive and changes the nomination, that change is considered effective.

In a successive nomination, all the nominees are given priority order. Upon the account holder's death, the first nominee receives the entire amount. There is no need to determine a percentage. If the first nominee also dies along with the account holder, the next nominee will be next, and so on.

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