RBI Proposes Faster Claim Settlement Rules For Deceased Customers’ Accounts And Lockers

The Reserve Bank of India (RBI) has proposed new rules to make claim settlement on bank accounts and lockers of deceased customers easier and faster.

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

Under the draft, banks must use standardised forms to receive claims and documents from nominees or legal heirs. These forms will be available in all bank branches and on their websites. Banks will also publish the list of required documents and the claim procedure.

If a nominee is named in a deposit account or locker, they must submit a claim form, the death certificate of the customer, and proof of identity and address.

Simplified Rules for No Nomination Cases

In cases without a nomination, banks must follow a simplified process to help legal heirs. They must set a claim threshold of at least ₹15 lakh. Claims within this limit will require an indemnity bond and a no-objection letter from other legal heirs.

For higher claims, additional legal documents like a succession certificate or legal heir certificate will be required.

Strict Timelines and Compensation

Banks must settle claims within 15 calendar days of receiving all necessary documents. For lockers or articles in safe custody, they must inform claimants within 15 days to fix a date for inventory.

If a bank delays deposit claim settlement due to its own fault, it must pay interest at not less than the prevailing Bank Rate plus 4 per cent per annum for the delay period.

For lockers or safe custody items, compensation will be ₹5,000 per day of delay.

The RBI said these measures will ensure timely RBI claim settlement and reduce hardship for nominees and heirs.

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