The RBI has released a draft circular titled “Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025” and is seeking public and stakeholders feedback until August 27, 2025. RBI aims to simplify procedures and speed up the process for heirs claiming accounts or locker contents of deceased customers. RBI plans to bring these rules into effect by January 1, 2026.
New Draft Guidelines By RBI
- The RBI wants all banks to use the same forms and follow the same steps when someone wants to claim money or belongings (like a locker) after a person has passed away. This will make things less confusing for people, no matter which bank they’re dealing with.
- Once the bank gets all the required documents, they must settle the claim within 15 days. This means nominees or legal heirs shouldn’t have to wait too long to get the money or access to lockers.
-
The nominee must provide a claim form, the death certificate, a valid ID and address proof.
-
When there is no nominee banks should still make it easy to claim the money, but they may ask for an indemnity bond (a written promise to take responsibility if there’s any problem later) and a no-objection letters (from other family members saying they’re okay with the claim).
-
If the claim is more than ₹15 lakh, the bank may also ask for a legal heir certificate, or a succession certificate (from the court).
-
If the bank delays the process for no good reason, they have to pay compensation: Extra interest on the money (for deposit accounts) and ₹5,000 per day if they delay returning items from lockers or safe custody. This is to make sure banks don’t take too long or cause unnecessary trouble.
- This extra interest rate is calculated at the rate of the Bank Rate plus 4%, for the number of days the payment is delayed. So, the longer the delay, the more extra money the bank must give to the person claiming the money.
Many people wait a long time and get confused when trying to get money or belongings of a family member who has passed away. Different banks follow different rules, which makes things harder and frustrating for people. This new plan will protect the rights of nominees and heirs and make sure banks handle these claims fairly and quickly.
The RBI will review the feedback it will receive by August 27, 2025. After that, it will issue final directions, and all banks will be required to comply with the new standard procedures.