RBI New Rule:The Reserve Bank of India (RBI) has introduced a new rule that requires banks to settle claims related to accounts, lockers, and safe deposits of deceased customers within 15 days.
If banks delay the process, they will have to pay a penalty. Here’s when the rule starts and how it will benefit customers.
RBI has proposed a standard procedure for handling claims related to the accounts and lockers of deceased customers. According to this rule, banks must complete the claim process within a maximum of 15 days.
Why has RBI introduced this new system?
RBI says the new rule aims to simplify and speed up the claim process for nominees and legal heirs. This will help reduce unnecessary delays and difficulties.
The central bank has released a draft circular called Reserve Bank of India (Settlement of Claims in Relation to Deceased Customers of Banks) Directions, 2025 and is asking for public feedback until August 27.
Banks Must Clearly Explain the Claim Process
As per the draft rules, banks will need to provide standard claim forms in their branches and on their websites. They must also clearly explain the step-by-step process along with a list of documents required.
What if There is or Isn’t a Nominee?
If a nominee is registered on the account or locker, the claimant only needs to provide the claim form, the death certificate, and proof of identity and address.
In cases where no nominee is registered, a simple process will apply for claims up to ₹15 lakh.
In such cases, additional documents like an indemnity bond and no-objection certificates from other legal heirs will be needed.
For claims above ₹15 lakh, a legal heir certificate or succession certificate must be submitted.
Locker Claim Procedure
RBI has also set a 15-day deadline for locker-related claims. Once all necessary documents are submitted, the bank must fix an inventory date within 15 days.
Compensation for Delays
If the delay is caused by the bank, compensation will be given. In case of deposits, 4% extra annual interest (above the bank’s regular rate) will be paid.
For locker or safe deposit delays, the bank will be fined ₹5,000 per day.
How Will Customers Benefit?
RBI believes that the new rules will remove confusion caused by different procedures in different banks, provide relief to grieving families, and improve customer service.
These rules will come into effect from January 1, 2026.
