RBI proposes standardised claim settlement for deceased customers; 15-day deadline, penalties for delay
The Reserve Bank of India (RBI) has proposed standardised forms and a uniform process for settling claims on bank accounts, safe deposit lockers and articles kept in safe custody of deceased customers, with a 15-day settlement deadline and compensation to nominees or legal heirs for delays.The central bank has issued the Draft Circular – Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025 and invited comments by August 27. The proposed guidelines aim to simplify procedures and bring uniformity across banks, PTI reported.Standard forms and simplified proceduresThe draft mandates banks to use standardised forms for receiving claims and supporting documents. In cases where a nominee has been provided, the claimant will need to submit a claim form, death certificate and an officially valid identity and address proof.Where there is no nomination, banks must adopt simplified settlement procedures, with a fixed threshold limit subject to a minimum of Rs 15 lakh. For claims up to the threshold, additional documents such as a bond of indemnity, surety, and letters of no-objection from non-claimant legal heirs, if applicable, will be required.For amounts above the threshold, a succession certificate, legal heir certificate or a declaration regarding legal heirs will be necessary.Locker claims and timelinesFor safe deposit lockers or articles in safe custody, similar procedures will apply. Banks will have to process such claims within 15 days of receiving all required documents and inform claimants to fix a date for inventory.The draft directs banks to make all required forms and document lists available at branches and on their websites.Compensation for delaysIf a bank delays settlement of deposit-related claims beyond the stipulated period, it will have to pay interest at the prevailing Bank Rate plus 4% per annum on the settlement amount for the delay period.For locker or safe custody claims, banks will pay Rs 5,000 per day for delays attributable to them.The RBI noted that the nomination facility is meant to speed up settlements and reduce hardship to families, but found divergent practices among banks. The new directions aim to standardise documentation and improve customer service.The proposed regulations are expected to be implemented no later than January 1, 2026.
