If a person passes away and has money in their bank account or items in a locker, the bank will now have to settle the claim faster.
The Reserve Bank of India (RBI) has directed banks to complete the settlement within 15 days.
If there is any delay, the bank will have to pay compensation to the nominee or legal heir.
The move aims to make the claim process for accounts and lockers more convenient, quick, and transparent.
Standard Procedures and Forms
RBI has proposed a standard procedure for all banks when handling claims for deceased customers.
The draft guidelines are called “Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025”.
Public feedback on this draft is open until August 27.
As per the draft, banks will:
Use standardised claim forms and documents for processing.
Compensate nominees for any delay in settlement.
Required Documents for Nominees
If a nominee is named for a deposit account or locker, they will need to submit:
Claim form
Death certificate of the account holder
Valid ID and address proof of the nominee
For accounts without a nominee, banks must follow a simplified claim process to avoid unnecessary delays for the claimant or legal heir.
Claim Settlement Limit
Banks will set a minimum claim settlement limit of ₹15 lakh, based on their risk management policies, for quicker processing of such cases.
