RBI’s 2025 Banking Rules — What Professionals and Customers Need to Know
The Reserve Bank of India’s new banking rules, effective 20 November 2025, introduce important changes designed to bolster security, transparency and customer convenience. For bankers, advisors and account holders alike, the update requires a rethink of account maintenance, nominee planning and operational controls. Below is a concise professional briefing on what’s changed and what to do next.
Core changes at a glance
- Account closures/restrictions: Banks will close or restrict certain accounts that have shown prolonged inactivity—specifically dormant accounts, inactive accounts and long-standing zero-balance accounts.
- Expanded nomination: Customers may now nominate up to four individuals per account, including fixed deposits, lockers and safe custody items.
- Two nomination formats: Nomination can be set as simultaneous (multiple nominees share proceeds) or successive (nominees become eligible one after another).
- Application to custody services: New rules extend to safe deposit lockers and safe custody articles.
Why the changes matter
Long-dormant and zero-balance accounts are increasingly vulnerable to fraud and misuse. By closing or restricting such accounts, the RBI aims to reduce risk exposure and streamline operational oversight. Simultaneously, allowing multiple nominees modernizes succession planning and simplifies claim settlement when an account holder dies—reducing friction and accelerating disbursals to families.
Practical implications for banks
- Operational readiness: Banks must strengthen monitoring systems to detect inactivity thresholds and trigger customer outreach or automated remediation.
- Customer communication: Clear, proactive messaging is critical—notify customers before closing or restricting accounts and explain reactivation steps.
- KYC & contact maintenance: Maintaining up-to-date KYC and contact details becomes more important than ever to ensure notifications reach customers.
- Claims handling: Back-office processes should be updated to support simultaneous and successive nomination settlements.
What customers should do now
- Review account activity: Check all accounts before 20 November 2025 and perform small, genuine transactions to avoid automatic closure.
- Update nominations: Consider adding up to four nominees and choose between simultaneous or successive nomination formats based on family circumstances.
- Clean up unused accounts: Close any zero-balance or redundant accounts you no longer use.
- Keep KYC current: Make sure contact details and KYC documents are up to date so banks can reach you with alerts.
Strategic advice for advisors
Financial and legal advisors should counsel clients to incorporate the expanded nomination option into estate plans, coordinate nominee selections across instruments (accounts, FDs, lockers), and document intended allocations to avoid ambiguity. Corporates and trustees should also update internal policies and client-facing materials to reflect the new nomination mechanics.
Bottom line
RBI’s 2025 rules represent a pragmatic balance between protecting the financial system and improving customer outcomes. For individuals, the takeaway is straightforward: be proactive—verify account status, update nominations, and keep KYC fresh. For institutions, this is an operational and communications challenge that also presents an opportunity to enhance trust through clearer, safer banking practices.
