The Reserve Bank of India has implemented strict rules for the settlement of bank accounts and locker claims of deceased customers. Now, banks will have to settle such claims within 15 days. In case of delay, banks will be obligated to pay compensation. The RBI has released a new draft to simplify and standardize the process, on which suggestions have been invited until August 27.
Reserve Bank of India: has implemented strict rules for the settlement of claims related to the accounts and lockers of deceased customers. The central bank has announced that banks must now complete the settlement of claims related to deceased customers' accounts and lockers within 15 days. If banks fail to complete this process on time, they will be penalized and will have to pay compensation for the delay. This decision was taken under the monetary policy issued by RBI Governor Sanjay Malhotra, which aims to streamline and make the process of bank accounts and locker claims of deceased customers more transparent. A standardized format will also be issued for banks, which will expedite the settlement of claims and prevent inconvenience to customers.
Documents Required for Deceased Accounts
The central bank has issued a draft called 'Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025'. In this, banks have been directed to use standardized forms for claims and necessary documents. Also, it has been clarified that there will be a provision for compensation in case of delay in claims. Under the draft, the nominee of the deceased will have to submit valid documents of identity and address, claim form and death certificate. Suggestions have been invited from stakeholders on this draft by August 27 so that final rules can be prepared.
Instructions to Banks for Simple and Quick Settlement
According to the draft, even if the deceased depositor has not made a nomination in their account, banks will adopt a simple procedure for the settlement of claims. The purpose of this process is to avoid any inconvenience to the claimants or legal heirs. Banks will make special provisions for claims up to ₹15 lakh based on their risk management systems, which will speed up the settlement. Currently, each bank has different rules, but this move by RBI will standardize the process and make it more convenient.
Changes in Process for '‘Nominee’' and '‘Without Nominee’' Accounts
In the current scenario, different banks adopt their own procedures for claims by the nominee of the deceased. Banks also have different procedures for accounts without nomination. To reduce this variation, the RBI has brought new guidelines, so that all banks will adopt a uniform procedure in the settlement of claims. This will make the settlement of claims easier and faster for customers and their family members.
What will change with the RBI's initiative?
This initiative of the Reserve Bank of India will increase transparency and accountability in the matter of claims related to the accounts and lockers of deceased customers. With the rule of timely settlement, banks will be able to take better care of the interests of the customers and get rid of the problems caused by unnecessary delays. Also, with the provision of compensation, banks will be more aware of their duties.
