RBI proposes new rules for easier claim settlements of deceased customers

New Delhi: The Reserve Bank of India (RBI) has proposed new rules to make it easier and faster to settle claims on the bank accounts and lockers of customers who have passed away.

The central bank has issued a draft circular, “Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025”, and invited public feedback on it by August 27.

Under the proposal, banks will have to use standardised forms to receive claims and related documents from nominees or legal heirs. These forms will be available in all bank branches as well as on their websites, along with a list of required documents and the step-by-step procedure for claim settlement.

The draft says that if a nominee is named in a deposit account or locker, they will need to submit a claim form, the deceased customer’s death certificate, and proof of their own identity and address.

For cases where no nomination was made, banks must follow a simplified procedure to avoid inconvenience to legal heirs. Banks will have to set a claim threshold of at least Rs 15 lakh.

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Claims up to this limit will require documents such as an indemnity bond and a no-objection letter from other legal heirs. For higher claim amounts, additional legal documents like a succession certificate or legal heir certificate will be needed.

The RBI has also set a clear timeline for settlement. Banks must complete the process within 15 calendar days of receiving all necessary documents. For lockers or articles kept in safe custody, banks must also issue a communication within 15 days to fix a date for taking inventory of the contents.

If banks delay the settlement of deposit-related claims beyond the deadline due to their own fault, they will have to pay compensation in the form of interest — at a rate not less than the prevailing Bank Rate plus 4 per cent per annum — for the period of delay. In the case of lockers or articles in safe custody, compensation will be Rs 5,000 for each day of delay.

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