RBI Proposes Easier Norms For Settlement Of Claims On Accounts, Lockers Of Deceased Customer
Banks that delay settling such claims beyond 15 calendar days from the receipt of all necessary documents will have to compensate the claimants: RBI
MUMBAI: The Reserve Bank of India (RBI) has proposed a uniform procedure including standardised forms and other documents and a maximum time period of 15 days to banks to settle claims with respect to deposit accounts and safe deposit locker articles of a deceased customer. The central bank in its draft circular on Settlement of Claims in respect of Deceased Customers of Banks noted that currently banks follow divergent practices and it was decided to reduce inconvenience to
bereaved families and improve quality of customer service.
Banks that delay settling such claims beyond 15 calendar days from the receipt of all necessary documents will have to compensate the claimants-- interest at Bank Rate plus 4 per cent per annum for deposit-related claims and Rs 5,000 per day for locker or safe custody claims.
The draft norms after feedback from public and stakeholders and consultations will take effect from January 1, 2026 and will be applicable to all commercial and cooperative banks.
The draft circular has proposed that when an account or locker has a valid nomination or a survivorship clause, the bank must release the funds or give access to the contents without insisting on legal documents such as a succession certificate, probate of will or indemnity bonds, regardless of the amount involved. In such cases, the nominee or survivor only needs to furnish a claim form, the death certificate and officially valid proof of identity and address.
Banks must make it clear that the payment or access is given to the nominee as a trustee for the legal heirs, and does not confer ownership rights over the assets.
Where no nomination or survivorship clause, banks must follow a simplified process for claims up to a threshold of at least Rs 15 lakh requiring additional documents such as an indemnity bond and no-objection letters from other legal heirs and a legal heir certificate or a declaration from an independent person known to the family.
Claims exceeding this limit would require additional legal documentation such as a succession certificate or an affidavit sworn before a judicial authority, along with third-party surety.
Similarly, for lockers and safe custody articles, if there is a nomination or survivorship clause, banks must verify documents, ensure no court orders restrain access, and prepare a detailed inventory of
the contents in the presence of the claimants, two independent witnesses and designated bank officials before handing over the items.
Where there is no nomination, the same inventory procedure will apply along with a bond of indemnity from all legal heirs. Any disputes among heirs will need to be resolved through court orders before the bank can act, said the circular.
