The Banking Laws Amendment Act, 2025 officially kicked in from the first of November. These key changes to banking and financial rules will impact bank account holders, credit card users, as well as government employees. Here’s a look at what these updates entail
and how they affect customers and other stakeholders.
The new rules that have come into effect
According to Key Provisions of the Act, Sections 10–13 of the new Banking Laws Amendment Act overhaul how nominations work for deposit accounts, safety lockers, and safe-custody items.
- Up to four nominees: Depositors can now nominate as many as four individuals for their accounts or lockers, assigning a percentage share to each (totalling 100 %).
- Mandatory disclosure by banks: When a customer opens a new account or locker, the bank must inform them about the nomination facility. If the customer chooses not to nominate anyone, the bank must obtain a written declaration.
- Wider scope: The nomination provisions explicitly apply to deposit accounts, safe-custody items, and safety lockers — not to loans or other investment products unless separately specified.
Other changes include bank website address (URL) and Aadhar updates. The RBI has instructed all banks to migrate their official online-banking domains to the extension “name.bank.in” to reduce phishing risks and strengthen customer trust. And, updated Aadhaar rules from November 1 allow individuals to modify demographic details such as name, address, or mobile number online via the MyAadhaar portal, a move that supports smoother Know-Your-Customer (KYC) compliance for banks.
What these changes mean for consumers
These new rules have a number of benefits for bank customers and credit card holders.
- Easier succession planning: Allowing multiple nominees and specifying each one’s share and makes it simpler for account and locker holders to plan how funds or valuables are distributed after their lifetime. This reduces ambiguity, inheritance disputes, and lengthy claim processes.
- Faster and clearer settlements: With defined nominations on record, banks can release funds or locker contents to nominees more quickly, avoiding procedural delays or legal hurdles.
- Greater transparency: Banks must now proactively inform customers of their nomination rights, ensuring more people make use of the facility rather than leaving accounts without beneficiaries.
- Safer digital banking: The shift to verified “.bank.in” domains improves trust and security, helping users distinguish genuine banking websites from fraudulent ones.
- Simpler KYC updates: Online Aadhaar updates mean fewer in-person visits for basic demographic changes, helping customers keep their banking profiles up to date without hassle.
Bank-specific changes from SBI and PNB
From November 1, 2025, SBI Card has introduced a 1% fee on:
- Education-related payments made via third-party apps like CRED or MobiKwik, instead of directly to the institution.
- Wallet top-ups exceeding ₹1000 under certain merchant codes.
Payments made directly to educational institutions’ official portals or POS terminals remain exempt.
SBI has also announced that the mCASH facility to send or claim money on OnlineSBI and YONO Lite will be discontinued after November 30, 2025. Users are encouraged to switch to UPI, IMPS, NEFT, or RTGS. With this change, customers using third-party apps for fee payments or wallet loads may see higher costs. Those relying on mCASH will need to migrate to alternate payment channels before the cutoff date.
PNB has revised locker rents, with a notice on October 16, 2025 announcing reductions across most locker categories, effective 30 days from the notice. However, earlier revisions in October 2025 had raised certain service fees — so customers should verify which category applies to them.
PNB will also implement the new four-nominee rule for deposits and lockers under the Act. Locker holders should therefore review their current rents and nominations. The flexibility in beneficiary allocation could make estate planning easier, while some customers may benefit from lower locker charges.
What to keep in mind
While these rules have been laid out clearly, it’s important to note that it may take time for them to be smoothly implemented.
- Rollout: Banks need to upgrade systems and train staff, so there may be teething issues in the early months.
- Nomination scope: The nomination rule applies to deposit-linked products only. Loans, mutual funds, and insurance policies continue to follow their own nomination norms.
- Cybersecurity: The domain shift enhances safety but doesn’t replace personal vigilance and password safety at the customer’s end.
- Aadhaar updates may take time: Though online access helps, some demographic changes could still require branch validation.
The Banking Laws (Amendment) Act 2025 and the wider set of November rule changes are reshaping how Indian customers interact with their banks — from inheritance planning and online safety to the simple act of updating an address. By simplifying nominations, improving digital safety, and tightening transparency standards, they aim to make everyday banking smoother and more secure, and if implemented well, will ensure long-term benefits for both banks and users.
Sources
PIB: Key Provisions relating to Nomination under the Banking Laws (Amendment) Act, 2025
Aadhaar Card-Related Changes From Nov 1: Online Updation To Simplified KYC — Check Details
New RBI rule: Banks move to secure ‘.bank.in’ domains to curb online fraud – CNBC TV18
RBI Issues New Norms for Nomination Facilities in Bank Accounts and Lockers from November 1