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RBI’s draft circular mandates banks to settle deceased customers’ deposit claims and start locker inventory within 15 days, with penalties for delays.
RBI’s New Draft Rules on Claim Settlement – 6 Key Things You Should Know
RBI Draft Rules On Claim Settlement for Banks: In an attempt to streamline procedures for faster and hassle-free settlement of claims relating to deposit accounts, safe deposit lockers and articles in safe custody in cases where a bank customer dies, the Reserve Bank of India (RBI) released a draft circular on August 11. The Central bank has invited public comments on its draft circular titled ‘Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025’.
- Under the proposed rules, banks will have to settle deposit-related claims within 15 days of receiving all necessary documents.
- In the case of lockers or safe custody articles, the inventory process must begin within 15 days. Delays attributable to banks will attract penalties — for deposits, interest at Bank Rate plus 4% per annum for the delay period, and for lockers/articles, Rs 5,000 per day.
- If a nominee or survivorship clause exists, banks can settle claims on the basis of just three documents — claim form, death certificate, and proof of identity and address of the nominee/survivor — without seeking legal documents such as succession certificates or indemnity bonds.
- In cases with no nominee, banks will adopt a simplified procedure for claims up to a threshold, set at a minimum of Rs 15 lakh. Above this limit, additional documents such as a succession certificate or sworn affidavit may be required.
- The draft also proposes no penalty for premature withdrawal of term deposits upon a depositor’s death, even during lock-in. For joint accounts, survivors can withdraw if a prior mandate exists.
- For missing persons, claims may be settled on the basis of a court’s presumption of death. Banks may set a small threshold for settlement with only an FIR, non-traceable report and indemnity letter.
RBI aims to make the claim settlement process easier and smoother for customers. Thus, a standardized set of claim forms will be used across banks, available at all branches and online, with provisions for lodging and tracking claims digitally.
The RBI has also emphasised customer awareness, directing banks to promote the nomination facility and survivorship clauses to avoid legal hassles for heirs.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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