Banks that do not comply with must compensate for nominees or claims with interest or daily fines for locker-related delays. The rules will take effect on March 31, 2026 at the latest. | Photocredit:
The Reserve Bank issued revised standards on Friday for the settlement of claims on the bank accounts and lockers of deceased customers within a period of 15 days and prescribed compensation for nominees for delays in the settlement.
The revised instructions are aimed at streamlining the various practices, followed by banks at the settlement of claims with regard to deceased customers. It has also standardized the documentation to improve the quality of customer service.
The central banks said that the ‘Reserve Bank of India (settlement of claims with regard to deceased customers of banks) instructions, 2025’ revised instructions will be implemented as quickly as possible, but no later than March 31, 2026.
The instructions are related to the settlement of claims on the deposit accounts of a deceased customer, lockers for the deposit and articles in safe detention by the deceased customer.
A deposit account in which a preserver had made an appointment or where the bill was opened with a surviving clause, the payment of the outstanding balance after the death of the custodian (s) is considered to the candidate (s)/ survivor (s) as a valid discharge of the liability of a bank, the RBI.
Simplified process for small deposits
In cases where accounts are without a candidate/surviving clause, banks are asked to take on a simplified procedure for the settlement of claims in cases where the amount to be paid is lower than the threshold limit.
Drempellimiet means RS 5 Lakh in the case of a cooperative bank and RS 15 Lakh in the case of another bank or a higher limit that can be determined by the bank, including a cooperative bank.
In cases where the amount is above the barrier limit, the bank can ask for additional documents, such as a succession certificate or a legal heir certificate.
The latest instructions from the RBI also write standards for the regulations of claims that do not fall under the simplified procedure.
It also describes the standards that must be followed for the settlement of claims in a safe of a safe and articles in safe detention by a deceased customer.
On the time limit for the settlement of claims, the RBI said that a bank will arrange a claim with regard to deposit accounts of a deceased customer within a period of a maximum of 15 calendar days from the date of receipt of all required documents connected to the claim.
“In the case of safe/ items in safe deposit in safe detention, the bank will process the claim within 15 calendar days after receiving all required documents and communicate with the claimant (s) to determine the date for determining the inventory of the locker/ items in safe custody,” the Central Bank said.
If a deposit -related claim is not determined within the time frame, the RBI said, the bank will communicate the reasons for such a delay to the claimant (s).
Compensation blower for settlement delay
“Furthermore, in cases of delay that can be attributed to the bank, the compensation is paid by the bank in the form of interest, at a rate no less than the prevailing bank rate + 4 percent per year, about the settlement amount due for the delay period,” it said.
For claims with regard to Safe Deposit Locker/ Articles in Safe Custody, the bank must pay a fee to the claimant (s) at the rate of RS 5,000 for each day of delay, in cases where it does not comply with the timeline.
Published on 27 September 2025
#RBI #requires #15day #deadline #settlement #claims #bank #accounts #deceased #customers #safe