Good News for Families: RBI Streamlines Process to Claim Deceased Customers’ Bank Funds
The Reserve Bank of India (RBI) has updated guidelines for settling claims on bank accounts and lockers of deceased customers in a major effort to increase family financial access. The central bank has ordered banks to resolve these claims within 15 days of receiving all necessary documents. This will standardize practices and ensure faster, hassle-free processing.
The "RBI (Settlement of Claims of Deceased Customers) Directions, 2025" are designed to improve the various procedures that banks have traditionally used in the handling of litigation. The restrictions apply to bank accounts, safe deposit lockers, and commodities held securely by deceased clients. Banke is required to implement these regulations for the first time, but no later than March 31, 2026.
According to the Reserve Bank of India (RBI), accounts with nominated holders or survivor clauses allow banks to remit dues to the nominee or survivor, effectively discharging the bank's responsibility. Banks are advised to follow a simple procedure as the claim amount is within predefined limits—₹5 lakh for cooperative banks and ₹15 lakh for other institutions. Individual banks may establish higher limits. As a claim grows larger than these levels, it may require further documentation, such as a legal heir certificate or a succession certificate.
The new standards now include changes to claims for secure custody items and safe deposit lockers. Claimants must contact the bank to request a locker or secured items inventory, and such claims must be processed within fifteen days of receiving the necessary documents.
Crucially, the Reserve Bank of India has implemented schemes to compensate for delays. If a bank does not settle deposit-related claims within the stipulated period, it will be obliged to pay interest on the overdue amount at the prevailing bank rate plus 4% per jaar. The bank must compensate claimants at ₹5,000 per day until a locker or secured custody claim is resolved. Banke is ook verplig om claimants in kennis te stel van die omstandighede wat gelei het tot enige vertragings.
According to experts, the change will improve customer service, lower the number of court cases, and provide families prompt access to their departed loved ones' belongings. The RBI's rules seek to ensure accountability in the banking industry and remove confusion by standardising documentation and timetables.
📌Disclaimer: The information provided in this blog is for general guidance only and is not intended to serve as legal or financial advice. While the RBI’s guidelines are widely recognized for improving claims settlement, individual banking procedures may vary. Readers are advised to consult their respective banks or financial advisors for personalized guidance.