The Reserve Bank of India (RBI) has proposed a uniform procedure for settling claims related to the bank accounts, safe custody articles, and lockers of deceased
customers, setting a maximum timeline of 15 days for completion.
The central bank has also suggested compensation for delays, aiming to simplify and expedite the process for nominees and legal heirs.
In its Draft Circular – Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025, the RBI has sought public feedback by August 27. The draft mandates banks to use standardised forms and make them available at branches and on their websites, along with a list of required documents and step-by-step claim procedures.
For accounts or lockers with registered nominees, claimants would only need to submit a claim form, the death certificate, and identity/address proof. Where no nomination exists, banks must follow a simplified process for claims up to a threshold limit—set at a minimum of ₹15 lakh—requiring additional 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.
The RBI has also prescribed timelines for locker claim settlements, with banks required to fix an inventory date within 15 days of receiving all documents.
Delays attributable to banks will invite penalties—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, reduce inconvenience to bereaved families, and improve customer service. The revised regulations are expected to take effect by January 1, 2026.
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