The Reserve Bank of India has proposed new rules to expedite and simplify the settlement of claims related to bank accounts and lockers of deceased customers. 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” and invited public feedback on the proposal by August 27.
Under the proposed framework, banks will be required to use standardised forms for receiving claims and related documents from nominees or legal heirs. These forms will be made available at all bank branches and on their websites, along with a list of required documents and a step-by-step procedure for claim settlement.
If a nominee has been named in a deposit account or locker, they will need to submit a claim form, the deceased customer’s death certificate, and proof of their own identity and address. In cases where no nomination has been made, banks must follow a simplified procedure to avoid inconvenience to legal heirs.
Banks will be required to set a claim threshold of at least Rs 15 million. Claims up to this limit will require documents such as an indemnity bond and a no-objection letter from other legal heirs. For claims exceeding this amount, additional legal documents such as a succession certificate or legal heir certificate will be necessary.
The draft directions also specify a clear timeline for settlement. Banks must complete the claim settlement process within 15 calendar days of receiving all necessary documents. For lockers or articles kept in safe custody, banks must issue a communication within 15 days to fix a date for taking inventory of the contents.
In cases where banks delay the settlement of deposit-related claims beyond the stipulated timeline due to their own fault, they will be liable to pay compensation in the form of interest at a rate not less than the prevailing Bank Rate plus 4 percent per annum for the period of delay. For delays in settling claims related to lockers or articles in safe custody, compensation will be Rs 5,000 for each day of delay.
