Is RBI Making It Easier for Legal Heirs to Claim Money from Deceased Customers' Bank Accounts?
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Synopsis
In a significant move, the RBI is set to simplify the claims process for deceased customers' bank accounts, ensuring ease for legal heirs. This initiative aims to reduce the hardships faced by families in accessing funds and valuables. Stay tuned for how this change will impact banking services and customer experience.
Key Takeaways
- RBI's new initiative aims to standardise claims process.
- Legal heirs will face less hardship when claiming funds.
- Streamlined procedures will be implemented across all banks.
- Nomination facility facilitates quicker claims settlement.
- Auto-bidding for T-bills introduced in Retail Direct.
Mumbai, Aug 6 (NationPress) The Reserve Bank of India (RBI) revealed on Wednesday its initiative to standardise and simplify the process for settling claims related to deposit accounts of deceased customers of banks, ensuring that grieving families experience minimal hardship while accessing their rightful funds or valuables.
The current claims settlement processes vary significantly among banks. To address this inconsistency, the RBI aims to streamline and standardise these procedures across all banking institutions, thereby facilitating smoother claims handling.
RBI Governor Sanjay Malhotra stated, “We are committed to standardising the claims settlement process for bank accounts, as well as for items stored in safe deposit lockers or safe custody of deceased bank clients. This initiative is expected to make the entire settlement process more convenient and straightforward.”
A draft circular regarding this will be published soon for public consultation, the RBI confirmed.
According to the Banking Regulation Act of 1949, a nomination facility is available for deposit accounts and items kept in safe custody or lockers. This provision is designed to expedite the settlement of claims or the return of items following a customer’s death, thereby reducing the burden on family members.
Currently, banks are mandated to follow a simplified procedure to ensure quick and hassle-free claims for survivors, nominees, or legal heirs; however, these procedures differ from bank to bank.
Additionally, the RBI has decided to implement auto-bidding features in the Retail Direct platform for investing in and reinvesting in T-bills.
“To assist investors in systematic planning of their investments, we have introduced an auto-bidding feature for Treasury bills (T-bills), covering both investment and reinvestment options, which allows automatic bid placements during primary auctions of T-bills,” the RBI noted.
The Retail Direct portal, launched in November 2021, enables retail investors to open Gilt accounts with the Reserve Bank under the Retail Direct Scheme. This scheme facilitates the purchase of Government Securities (G-Secs) during primary auctions and their trading in the secondary market. Since its inception, new features, including a mobile app launched in May 2024, have been incorporated to enhance user experience.
Point of View
Our perspective remains aligned with the nation’s interests. The RBI's decision to standardise the claims process for deceased customers is a commendable step towards enhancing the banking experience for families during their most challenging times. This initiative not only reflects the RBI's commitment to customer service but also underscores the importance of compassion in banking.
NationPress
21/09/2025
Frequently Asked Questions
What changes is the RBI making to the claims process?
The RBI is standardising and simplifying the claims settlement process for deceased customers' bank accounts to assist legal heirs in accessing funds more easily.
How will this affect families of deceased bank customers?
Families will experience reduced hardship when claiming money or valuables, thanks to the streamlined procedures set by the RBI.
When will these changes take effect?
The RBI will issue a draft circular for public consultation shortly, detailing the new procedures.
What is the purpose of the nomination facility under the Banking Regulation Act?
The nomination facility allows for the expeditious settlement of claims or return of articles upon a customer's death, easing the burden on family members.
What is the Retail Direct scheme?
The Retail Direct scheme enables retail investors to buy and sell Government Securities (G-Secs) through a dedicated portal, improving access to government investments.
