RBI’s New Banking Rules 2025: What Every Account Holder Must Know
The Reserve Bank of India has introduced a fresh set of banking rules that will come into effect on 20 November 2025. These changes are designed to make the banking system more secure, transparent and customer-friendly. One of the most important updates is the ability for account holders to add up to four nominees to their bank accounts, ensuring smoother and faster claim settlements for families.
Why These New Rules Matter
Banks often maintain thousands of inactive, dormant or zero-balance accounts. Such accounts are especially vulnerable to misuse or fraudulent activity. To strengthen customer safety and improve account management, RBI has decided to close or restrict accounts that show no activity for long periods.
At the same time, the expanded nomination facility will help eliminate delays and disputes during the settlement of a deceased customer’s funds. Families will have clearer rights, and banks will have a more structured process to follow.
Accounts That Will Be Affected
Under the new rules, three types of accounts may be closed or restricted:
1. Dormant Accounts
These are accounts with no transactions for two years. If no customer-initiated activity takes place, the bank will begin the closure process.
2. Inactive Accounts
These accounts show no customer-initiated transaction for 12 months. Although not immediately closed, they fall under stricter monitoring and may be restricted.
3. Zero-Balance Accounts
If a zero-balance account remains unused for an extended time after opening, it will also be closed.
The goal is simple: prevent misuse, maintain cleaner banking records, and ensure that only active, legitimate accounts remain operational.
New Nomination Rules: A Big Advantage for Customers
From November 2025 onwards, customers can add up to four nominees for:
- Savings accounts
- Current accounts
- Fixed deposits
- Safe deposit lockers
- Safe custody articles
Banks will now offer two types of nomination structures:
Simultaneous Nomination
All nominees hold equal rights. Each receives a share if a claim is made.
Successive Nomination
Nominees are arranged in order. If the first nominee is unavailable, the next in line becomes eligible.
This update ensures families do not face complications during claim settlements. It also allows customers to structure their financial legacy more thoughtfully.
Benefits of the New Banking Rules
1. Greater Transparency
Account activity will be more closely monitored, helping banks maintain cleaner records and reducing risks.
2. Quicker Fund Settlement
With more nominees and clearer structures, banks can process claims faster for the families of deceased customers.
3. Higher Security
Dormant and zero-balance accounts are often targeted for fraud. Closing them strengthens overall banking security.
4. More Account Awareness
Customers will be encouraged to take better care of their accounts—activating them regularly, keeping nominations updated, and maintaining proper KYC records.
Summary of the 2025 Rule Changes
| Point | Details |
|---|---|
| Effective Date | 20 November 2025 |
| Accounts Affected | Dormant, inactive and zero-balance accounts |
| Maximum Nominees Allowed | 4 |
| Nomination Types | Simultaneous & Successive |
| Purpose | Better security, transparency and faster claim settlement |
| Customer Role | Keep accounts active, update nominations, maintain KYC |
| Bank Role | Monitor account activity and send timely alerts |
What Customers Should Do Now
To avoid inconvenience or account closure, every account holder should:
- Check account status before November 2025.
- Make a small transaction if the account is inactive.
- Add up to four nominees to ensure smoother claims for family members.
- Close zero-balance accounts that are no longer in use.
- Update KYC details and contact information to receive notifications on time.
Final Thoughts
RBI’s 2025 rules mark an important shift toward a safer and more organised banking environment. These changes not only protect customers from fraudulent activity but also simplify the process of managing and transferring funds. By staying informed and proactive, account holders can ensure they comply with the new guidelines and enjoy a more secure banking experience.
