The Reserve Bank of India (RBI) has proposed a uniform process to make it easier and faster for families or legal heirs to claim money and valuables from the bank accounts, lockers, or safe custody articles of deceased customers. For that, the RBI has proposed a 15-day deadline within which the banks must settle all the claims after receiving the required documents. The banker’s bank also drafted compensation to nominees or legal heirs for delays.
The proposed regulations have been issued by the bank in the draft circular – Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025. These regulations, which will come into effect on or before January 1, 2026, have invited comments by August 27 this year.
Standardised forms
Once the draft circular comes into effect, the banks will have to use standardised forms to receive claims and supporting documents. The banks will also have to list all required documents and forms on their websites and at branches to help the grieving families speed up settlements.
For accounts or lockers with a registered nominee, claimants would only need to provide three things: a claim form, a death certificate, and valid identity and address proof.
In cases where the deceased’s bank account doesn’t have a nominee, banks must follow a simpler process for claims up to Rs 15 lakh. For this, the claimant has to produce additional documents such as an indemnity bond, no-objection letters from other legal heirs, if applicable, and surety.
For claims above this limit, a legal heir certificate or succession certificate, or a declaration regarding legal heirs would be necessary.
Compensation to nominees or legal heirs
If banks delay settlements, they will have to pay penalties. This will be a total interest at the Bank Rate plus 4 per cent per year for deposit claims. In case of lockers, the banks will have to pay Rs 5,000 per day.