Synopsis: The RBI has proposed new rules mandating banks to settle claims on deceased customers’ accounts and lockers within 15 days. The draft guidelines aim to simplify procedures for nominees and legal heirs while introducing compensation for delays.
RBI Proposes 15-Day Deadline for Deceased Account Claim Settlements: Faster Relief for Nominees
The Reserve Bank of India (RBI) has released a draft circular, "Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025", proposing a streamlined and time-bound process for settling claims on bank accounts and lockers of deceased customers. Public feedback is open until August 27, 2025.
Under the new proposal, banks will be required to provide standardised claim forms both in branches and online, along with clear instructions and a list of necessary documents. For deposit accounts or lockers with a named nominee, claimants will need to submit the claim form, death certificate, and proof of identity and address.
If no nomination exists, a simplified process will apply for claims up to ?15 lakh, requiring documents like an indemnity bond and a no-objection letter from other legal heirs. Claims exceeding this limit will need additional legal documents such as a succession certificate or legal heir certificate.
Key highlight: Banks must complete the claim settlement within 15 calendar days of receiving all required documents. For lockers and safe custody items, they must notify claimants within 15 days to fix an inventory date. Delays due to the bank’s fault will attract compensation—interest at Bank Rate plus 4% p.a. for deposits, or ?5,000 per day for lockers and safe custody items.
The RBI’s move is expected to provide quicker relief to grieving families and improve transparency in post-demise banking procedures.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Readers are advised to consult their bank or a qualified professional for specific guidance.
