RBI Sets 15-Day Rule for Settling Deceased Customers' Claims
- 15-day deadline for banks to settle claims after receiving documents.
- Rs 15 lakh threshold for simplified claim process with minimal paperwork.
- Penalties for delays interest on deposits or Rs 5,000/day for lockers.
The Reserve Bank of India (RBI) has unveiled a draft framework aimed at making it easier and quicker to settle claims related to bank accounts and lockers of deceased customers. The draft circular, titled "Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025", is open for public feedback until August 27.
Under the proposed rules, all banks will be required to adopt standardised claim forms and procedures for nominees and legal heirs. These forms, along with detailed instructions and lists of required documents, must be made available at all bank branches and on their websites.
For deposit accounts and lockers with a nominated person, the nominee will need to submit a claim form, the deceased customer’s death certificate, and proof of identity and address. In cases where no nomination exists, banks must follow a simplified process to ensure legal heirs are not subjected to unnecessary hardship.
The draft mandates that banks set a minimum claim threshold of Rs 15 lakh. For claims up to this limit, only basic documents such as an indemnity bond and a no-objection letter from other legal heirs will be needed. Larger claims will require additional legal proof, including a succession certificate or legal heir certificate.
To ensure speedy resolution, the RBI has proposed strict timelines. Banks will have to settle claims within 15 calendar days of receiving all necessary documents. For lockers or articles held in safe custody, they must issue a communication within 15 days to fix a date for inventory.
Delays caused by the bank will attract penalties. For deposit-related claims, banks must pay interest at a rate not less than the prevailing Bank Rate plus 4% per annum for the delay period. For lockers and safe custody articles, the penalty will be Rs 5,000 per day of delay.
The RBI’s move aims to standardise claim procedures across banks, cut red tape, and ensure timely access to funds and assets for bereaved families. If implemented, the directions could significantly reduce the stress faced by nominees and legal heirs during an already difficult time.
