RBI Issues New Directions to Streamline Settlement of Claims for Deceased Customers
The Reserve Bank of India (RBI) has issued the Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025 to establish a uniform framework for banks to process claims arising after the death of a customer. These Directions aim to reduce hardship for nominees, survivors, and legal heirs, improve customer service, and ensure consistency across the banking sector.
The Directions cover settlement of claims for deposit accounts, safe deposit lockers, and articles in safe custody. They apply to all commercial and co‑operative banks and will be implemented by March 31, 2026. However, certain government savings schemes such as Senior Citizen Savings Scheme (SCSS) and Public Provident Fund (PPF) are excluded, with claims settled according to scheme-specific rules.
A core feature of the Directions is the standardisation of documentation and procedures. For accounts with nomination or survivorship clauses, banks can pay the nominee(s) or survivor(s) without requiring succession certificates or probate of will, provided proper due diligence is carried out. In such cases, the nominee’s or survivor’s right to claim arises upon death of the account holder, and the payment made is treated as full discharge of the bank’s liability.
For accounts without nomination or survivorship clauses, the RBI prescribes a simplified procedure for claims up to a “threshold limit” (₹5 lakh for co‑operative banks and ₹15 lakh for others). This requires basic documents such as a claim form, death certificate, and proof of identity, along with a legal heir certificate or affidavit. For claims above the threshold, additional documentation such as a succession certificate or probate of will is required.
For safe deposit lockers and articles in safe custody, similar procedures apply. Where there is a nominee or survivorship clause, access is given to the nominee(s) or survivor(s) without requiring legal documents, subject to verification. For cases without such clauses, simplified or standard claim procedures apply, depending on the circumstances.
The Directions require banks to resolve claims within 15 calendar days of receiving all documents. If there is a delay, compensation is payable — interest at Bank Rate + 4% for deposit claims, and ₹5,000 per day for locker-related claims.
The RBI also mandates that banks adopt standard claim forms, display clear procedures online, allow online claim filing, and spread awareness about nomination facilities. These measures aim to bring transparency, consistency, and faster resolution, ensuring fairness for bereaved families while strengthening trust in the banking system.
