Claim settlement of deceased customers' bank accounts is now easier
What's the story
The Reserve Bank of India (RBI) has proposed a uniform procedure for settling the claims related to the bank accounts, safe custody articles, and lockers of deceased customers. The central bank has also suggested compensation for delays in this process. The move is aimed at simplifying and expediting the process for nominees and legal heirs.
Feedback invitation
Draft forces banks to use standardized forms for claims
The RBI has invited public feedback on its Draft Circular - Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025, by August 27. The draft mandates banks to use standardized forms for claims and other documents. These forms must be made available at branches and on their websites, along with a list of required documents and step-by-step claim procedures.
Claim procedure
Claims with registered nominees and without nominations
For accounts/lockers with registered nominees, claimants would only need to submit a claim form, the death certificate, as well as identity/address proof. In cases where no such nomination exists, banks must follow a simplified process for claims up to a threshold limit, set at a minimum of ₹15 lakh. This would require extra documents such as an indemnity bond and no-objection letters from other legal heirs. Claims exceeding this limit would require legal heir certificates or succession certificates.
Locker claims
Prescribed timeline for locker claim settlements
The central bank has also prescribed timelines for locker claim settlements, with the banks required to fix an inventory date within 15 days of getting all documents. Delays attributable to banks will invite penalties, ie. interest at Bank Rate plus 4% per annum for deposit-related claims, and ₹5,000 per day for locker or safe custody claims. The regulator said the move aims to eliminate divergent practices across banks and improve customer service.