Section 10(b) in The Banking Laws (Amendment) Act, 2025
(b)after sub-section (1), the following sub-sections shall be inserted, namely:—“(1A) Where the nomination is made successively in favour of more than one person under sub-section (1), the nomination shall be effective only in favour of one person in the order of priority specified in section 45ZG.(1B) Where the nomination is made simultaneously in favour of more than one person under sub-section (1), the nomination shall be effective in favour of all such persons in proportion to which it is declared, and the following terms and conditions shall apply, namely:—(a)the nomination shall not be made in favour of more than four persons;(b)the nomination shall explicitly state the proportion of amount of deposit in percentage in favour of each nominee;(c)the nomination shall be made in respect of the whole amount of deposit;(d)if any nominee dies before receiving deposit from the banking company, the nomination in respect of such nominee alone shall become ineffective and the amount of deposit purported to be nominated in favour of deceased nominee shall be treated as if nomination had not been made in respect of that portion of deposit,and any nomination which does not comply with any of the terms and conditions specified in clauses (a) to (c), shall be invalid, as if nomination had not been made by the depositor or all the depositors together, as the case may be.”
