What New Rules Did RBI Propose for Faster Settlement of Claims on Accounts and Lockers of Deceased Customers?
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Synopsis
The RBI has unveiled proposed regulations aimed at streamlining and accelerating the process of settling claims for bank accounts and lockers of deceased customers. These changes are expected to significantly ease the burden on legal heirs during an already difficult time, making the process more efficient and transparent.
Key Takeaways
- Standardized forms for claims will be introduced.
- Timelines for settlement are set at 15 days.
- Claims up to Rs 15 lakh require specific documentation.
- Compensation for delays will be enforced.
- Clear communication on processes is mandated.
New Delhi, Aug 10 (NationPress) The Reserve Bank of India (RBI) has introduced a set of new regulations aimed at simplifying and expediting the process of settling claims related to the bank accounts and lockers of customers who have passed away.
The central authority has released a draft circular titled "Reserve Bank of India (Settlement of Claims regarding Deceased Customers of Banks) Directions, 2025", inviting public commentary on the proposal by August 27.
As per the new guidelines, banks are required to utilize standardized forms to collect claims and associated documentation from nominees or legal heirs.
These standardized forms will be accessible at all banking branches and on their respective websites, along with a comprehensive list of necessary documents and a detailed procedure for settling claims.
The draft stipulates that if a nominee is designated in a deposit account or locker, they are required to submit a claim form, the deceased’s death certificate, and proof of their own identity and address.
In scenarios where no nomination exists, banks are mandated to follow a streamlined process to minimize inconvenience for legal heirs.
Banks must establish a claim threshold of at least Rs 15 lakh. Claims falling within this range will necessitate documentation such as an indemnity bond and a no-objection letter from other legal heirs.
For claims exceeding this threshold, additional legal documentation like a succession certificate or legal heir certificate will be required.
The RBI has also defined a specific timeline for claim settlement. Banks are obligated to finalize the process within 15 calendar days of receiving all requisite documents.
For lockers or items stored in safe custody, banks must issue a notification within 15 days to schedule an inventory of the contents.
If banks procrastinate in settling deposit-related claims beyond the stipulated timeframe due to their own shortcomings, they will be liable to pay compensation in the form of interest at a rate not less than the prevailing Bank Rate plus 4 percent annually for the duration of the delay.
For lockers or items in safe custody, the compensation will amount to Rs 5,000 for each day of delay.
Point of View
I believe these proposed regulations from the RBI reflect a necessary shift towards greater efficiency and compassion in banking practices. By simplifying procedures for settling claims of deceased customers, the RBI is addressing a critical issue that affects countless families during their most vulnerable moments. It’s essential that banks adhere to these guidelines to foster trust and reliability in our financial systems.
NationPress
06/10/2025
Frequently Asked Questions
What are the new rules proposed by the RBI?
The RBI has proposed new rules aimed at simplifying the process of settling claims for deceased customers' accounts and lockers, including standardized forms and a clear timeline for settlement.
What is the claim threshold set by the RBI?
The RBI has established a claim threshold of at least Rs 15 lakh for settling claims, which requires specific documentation.
How long do banks have to settle claims?
Banks must complete the settlement process within 15 calendar days upon receiving all necessary documentation.
What compensation is applicable for delays in claim settlement?
If banks delay settlements beyond the deadline, they may have to pay interest compensation as well as Rs 5,000 for each day of delay for lockers or items in safe custody.
How can claim forms be obtained?
Claim forms will be available at all bank branches and on their websites, along with a list of required documents.
