New nomination rule for bank lockers proposed

The Banking Laws (Amendment) Bill, 2024, submitted by Finance Minister Nirmala Sitharaman, includes a proposal to raise the maximum number of nominees permitted per bank account and locker from the current one to four.

Currently, the Banking Regulation Act permits single or joint depositors to designate a nominee for their deposits. A nominee can also be nominated for items left in the custody of a bank or for a locker rented from a bank. In the event that the nominator dies, the nominee has access to the deposit, articles, or locker.

As per news reports, the Bill has proposed nominations of up to four nominees. For deposits, such nominees can be appointed successively or concurrently, although for other purposes, they can be appointed sequentially. In the case of several nominees, the nomination will be effective in a predetermined proportion. For subsequent nominations, the nominee identified higher in the nomination order will be given priority.

“The Banking Regulation Act allows single or joint deposit holders to appoint a nominee for their deposit. Such a nominee can also be appointed for items left in custody of a bank or for a locker hired from a bank. The nominee can access the deposit, articles, or locker in case of death of the person who nominated him. The Bill allows the appointment of up to four nominees for these purposes. For deposits, such nominees can be appointed either successively or simultaneously while for other purposes they can be appointed successively. In case of simultaneous nominees, the nomination will be effective in a declared proportion. For successive nomination, the nominee who has been named higher in the order of nomination will receive priority,” according to The Banking Laws (Amendment) Bill, 2024.

As per the Indian Banks' Association (IBA) website, “Banking Companies (Nomination) Rules 1985 permits banks to pay dues to nominees in the event of death of depositor(s) without asking for succession certificate or verifying claims of legal heirs. This simplifies settlement. Of course, as Trustee the nominee is accountable to legal heirs.


Nomination facility available for bank deposits, safe deposit lockers, safe custody articles.

There can be only one Nominee for a deposit account whether held singly or jointly.

There can be two nominees for a jointly held locker.
A person legally empowered to operate a minor's account can file a nomination on behalf of the minor.”

You will need to add nominees to your bank locker, just like you would with any other financial tool or service. Here's how, per the bank's website, a person who has a locker at HDFC Bank can add or modify a nominee.

To change or add the nomination, one can download the forms or visit the branch fill the required application and submit it to your locker branch only.

To cancel a nomination: Form SL2

To change a nomination: Form SL3 (sole hirer)/SL3A (joint hirer).