India’s Regulatory Reset: New Rules for Bank Nominations and Aadhaar Streamlining Launch in November
New Delhi: India has commenced November with a sweeping array of regulatory changes aimed at modernizing financial administration, streamlining digital identity services, and easing burdens on citizens. These rule changes, effective immediately, touch on everything from individual bank accounts and credit card fees to digital identity updates and pensioner compliance deadlines.
The overarching theme is a push for greater convenience and transparency, though some measures, like new credit card fees, underscore the cost of digitalization.
The most significant change for the average citizen lies in the overhaul of banking nomination rules, effective from November 1.
• Expanded Nomination Capacity: Under the Banking Laws (Amendment) Act, 2025, bank account holders are now allowed to nominate up to four individuals for their bank deposits, safety lockers, and safe custody items.
• The Goal: This key reform is designed to dramatically simplify the process of claiming funds for legal heirs in unforeseen circumstances, aiming to reduce the long-standing legal disputes and administrative red tape that often follow the death of an account holder. The change facilitates either simultaneous designation of all nominees or a set succession order, offering greater flexibility.
The Unique Identification Authority of India (UIDAI) has also revamped the process for updating the foundational digital identity document, Aadhaar.
• Online Demographic Updates: Many demographic changes, such as correcting a name, date of birth, or mobile number, can now be initiated online through the myAadhaar portal. This eliminates the need for in-person visits to an Aadhaar Seva Kendra for many routine changes.
• Revised Fee Structure: While the process for demographic updates has been simplified, the UIDAI has also revised its fee structure. For adults, updating biometric details (fingerprints, iris scans) now costs `125. However, the biometric updates for children between the ages of 5-7 years and 15-17 years are set to remain free for the first instance.
Not all changes were geared toward reduced hassle; compliance deadlines and cost adjustments were also announced:
• Pensioner Deadline: Central and state government pensioners must submit their annual Life Certificate (Jeevan Pramaan) between November 1 and November 30, 2025, to ensure uninterrupted disbursement.
• Credit Card Fee Introduction: SBI Card announced an updated fee structure, introducing a 1% fee on specific transaction categories. This fee now applies to education-related payments made via certain third-party platforms (like CRED or MobiKwik) and on digital wallet reloads exceeding Rupee Foradian `1,000 made under certain merchant codes. This adjustment highlights the ongoing efforts by card issuers to manage costs associated with specific types of low-margin transactions. (Source: Financial Express / The Times of India: Reporting on the implementation of new financial rules, including bank deposit nominations and pension deadlines, effective November 1, 2025)
