The Reserve Bank of India (RBI) has introduced new rules to make it easier and faster for families to claim money, lockers, or deposits after the death of a bank customer.
Banks must now settle such claims within 15 days. If there is any delay, the nominee will get compensation from the bank.
Key Objectives of the Rules
Ensure that nominees or legal heirs get money or belongings quickly.
Make the settlement process simple and transparent.
Make it mandatory for banks to settle claims within 15 days.
In case of delays, banks must pay compensation.
These rules are part of the RBI (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025, and banks must implement them by March 31, 2026.
How Claims Will Be Settled
If there is a nominee:
When the account holder has nominated someone, payment to the nominee will be treated as a valid settlement of the bank’s liability.
If there is no nominee:
Banks must follow a simplified process for accounts without a nominee if the amount is below a fixed limit.
₹5 lakh for cooperative banks
₹15 lakh for other banks
Banks may choose to set even higher limits.
If the claim is above the limit, the bank can ask for documents like a succession certificate or legal heir certificate.
If the bank delays:
Banks must pay compensation to the nominee if claims are not settled within 15 days. The exact compensation amount will be announced later.
Where These Rules Apply
Deposit accounts like savings accounts and fixed deposits
Safe deposit lockers
Safe custody items kept in the bank
Why This Matters for You
If a family member passes away, you will no longer need to face lengthy legal procedures to access their money or belongings in the bank.
With the new rules, the bank must finish the process within 15 days, ensuring quick and hassle-free settlement.
