The banking system in India is undergoing some major changes starting November 1, 2025, and it’s important for every account holder to understand what’s changing and how these updates can benefit them.
From nomination rules in bank accounts to faster cheque clearance,
these new measures aim to improve transparency, efficiency, and customer
convenience in India’s banking system.
New Banking Rules from November 1, 2025
According to a statement issued by the Finance Ministry,
the key provisions under the Banking Laws (Amendment) Act, 2025 will
officially come into effect from November 1, 2025. These provisions
mainly focus on simplifying the nomination process for bank customers
and improving claim settlement procedures.
Let’s look at what exactly is changing.
1. New Nomination Facility for Bank Accounts
From November 1, 2025, bank customers will be able to
nominate up to four persons for their bank account.
This is one of the biggest changes introduced to help depositors distribute
their funds more efficiently and transparently after their lifetime.
Earlier, customers were allowed to choose only one nominee.
But under the new nomination rules, customers can:
- Nominate
up to four people either simultaneously or sequentially.
- Specify
the percentage share for each nominee (for example, 50%, 30%, and
20%).
- Easily
manage and update nominations whenever needed.
This step will ensure a transparent and fair distribution
of the depositor’s money among nominees and will reduce legal complications
during claim settlement.
2. Sequential Nomination for Safety Lockers and Safe
Custody Items
The new banking rule also brings clarity for locker
holders and those who have deposited valuables in safe custody.
As per the amendment, only sequential nominations are allowed for lockers
and safekeeping items.
That means, if the first nominee is not available or eligible, the right will
automatically pass to the next nominee in line.
This arrangement is designed to make claim settlement
smoother and faster, preventing disputes among family members or legal heirs.
3. Simplified Claim Settlement Process
One of the key purposes of the new rules is to make the claim
settlement process faster and uniform across all banks.
The new law will bring standardisation in how banks handle nomination
records and claims, ensuring efficiency and uniformity in
reporting to the Reserve Bank of India (RBI).
This is a big relief for families of deceased depositors who
often face delays or confusion due to inconsistent procedures across different
banks.
4. Strengthened Customer Protection
The Banking Laws (Amendment) Act, 2025 also focuses
on strengthening the administrative and audit standards in the banking
sector.
It aims to:
- Improve
the quality of audits in public sector banks.
- Ensure
better protection of depositors and investors.
- Enhance
customer convenience through improved transparency in banking
operations.
Overall, this reform is meant to make Indian banking more customer-centric,
reliable, and transparent.
Cheque Clearance Rule Change by RBI
Along with the new nomination system, the Reserve Bank of India (RBI) has also introduced a major update in the cheque clearance process starting from October 4, 2025.
This change will make cheque transactions faster and more efficient.
1. Fast Cheque Clearance System Introduced
Earlier, cheque clearance took 1–2 working days. But
now, with the new Fast Cheque Clearance System, the amount will be credited
to your account on the same day.
Here’s how the new process works:
- Banks
will scan and send all cheques deposited between 10 am and 4 pm to
the clearing house immediately.
- The clearing
house will confirm those cheques by 7 pm.
- Once
confirmed, the cheque will be cleared, and the money will be credited the same
day.
This change marks a major improvement in the banking
infrastructure, helping both customers and businesses manage their
transactions more effectively.
2. Two-Phase Implementation Plan
RBI has decided to implement the new system in two phases:
- Phase
1 (from Oct 4, 2025 to Jan 2, 2026):
Banks will have until 7 pm to confirm cheques for clearance. - Phase
2 (from January 3, 2026):
The time limit will be reduced to 3 hours.
For example, if a cheque is deposited at 10 am, it must be cleared by 2 pm.
Initially, this system will be launched in major cities like
Delhi, Mumbai, and Chennai, and then expanded across India in the next
few months.
3. Positive Pay System Made Mandatory
RBI has also made the Positive Pay System mandatory
for large-value cheques.
Under this system, customers must pre-confirm the cheque details—such as
cheque number, date, amount, and payee name—with their bank before the cheque
is presented for clearing.
This step helps prevent fraudulent transactions, duplicate
cheques, and dishonoured payments due to mismatched details.
Benefits for Common Bank Customers
These changes will bring multiple benefits for both
individuals and businesses:
- Faster
cheque clearance means money will be available in your account the
same day, improving cash flow.
- Multiple
nominations make it easier to distribute deposits without disputes.
- Sequential
nominations for lockers protect your valuables and ensure smooth claim
transfers.
- Improved
transparency increases trust in the banking system.
- Reduced
fraud risk with the Positive Pay System.
Overall, these rules will make the Indian banking system
more efficient, transparent, and customer-friendly.
What Should Customers Do Now?
If you are a bank account holder, here’s what you can do to
stay updated:
- Review
and update your nominee details before November 1, 2025.
- Provide
complete and accurate information while depositing cheques.
- Ensure
you maintain sufficient balance in your account to avoid cheque
dishonour.
- Stay
informed about the Positive Pay System if you issue large cheques
regularly.
Frequently Asked Questions (FAQs)
1. What is changing in banking rules from November 1, 2025?
From November 1, bank customers can nominate up to four people for their
accounts and specify their percentage shares. This change aims to simplify and
standardise the claim settlement process.
2. What is the Fast Cheque Clearance System?
It is a new RBI system where cheques will be cleared and credited to your
account on the same day instead of waiting for 1–2 days.
3. What is the Positive Pay System?
The Positive Pay System is a fraud-prevention measure where customers must
share cheque details with their bank before the cheque is processed.
4. How will these changes benefit customers?
These changes will save time, reduce disputes, prevent cheque fraud, and make
the entire banking process faster and more transparent.
5. Do I need to update my nominee information?
Yes. If you have only one nominee currently, you can now add up to three more
nominees after November 1, 2025.
Read also :
1) The Hidden Benefits of a Salary Account You Need to Know Now
2) RBI Rules Update: Add Up to Four Nominees to Your Bank Account
Summary:
The banking rules changing from November 1, 2025, mark a major step
towards modernising India’s banking system. With faster cheque
clearance, multiple nomination options, and stronger security,
these changes will bring greater convenience and trust for millions of Indian
customers.
Staying informed and updating your details on time will help you make the most of these new banking benefits.
