The Reserve Bank of India (RBI) has issued a comprehensive set of revised directions to streamline and standardise the process for settlement of claims in respect of deceased bank customers. 

The new framework, titled Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025, aims to reduce hardships faced by family members, nominees, and legal heirs while accessing bank deposits, safe deposit lockers, and articles in safe custody after the account holder’s death. 

The directions, applicable to all commercial and cooperative banks, must be fully implemented by March 31, 2026. They replace several previous circulars and introduce uniform documentation requirements, clear timelines, and compensation rules for banks in case of delays.

Key Highlights of the New Framework

Nominee/Survivor Will Not Be Asked for Succession Certificate

Where a bank account or locker has a registered nominee or survivorship clause, banks must release the funds or lockers directly to the nominee without asking for:

• Succession Certificate
• Legal Heir Certificate
• Probate of Will
• Surety or Indemnity Bonds

This payment will constitute a full discharge of the bank’s liability, though the nominee will act as a trustee on behalf of legal heirs. 

Reserve Bank of India (Settleme…

Simplified Procedure for Accounts Without Nomination

If no nomination exists and the claim amount is below the threshold limit:

• ₹15 lakh for commercial banks
• ₹5 lakh for co-operative banks

Banks must settle claims based on:

• Claim form
• Death certificate
• Identity documents of claimants
• Legal heir certificate or declaration by a credible third person
• Indemnity bond

No third-party surety will be required for such claims. 

Reserve Bank of India (Settleme…

For claims above the threshold, banks may ask for:

• Succession Certificate or Legal Heir Certificate
• Surety from an acceptable person

Locker and Safe Custody Settlement

For lockers with nomination/survivor Bank must provide access and allow removal of contents after verifying documents.

An inventory must be made in the presence of the nominee/survivor and independent witnesses. 

Clear Time Limits for Banks

Deposit claims: Must be settled within 15 days after receipt of all required documents.

Locker claims: Banks must schedule inventory and settlement within 15 days of document completion. 

Compensation for Delay

If the delay is attributable to the bank for deposits: Bank must pay Bank Rate + 4% interest on the claim amount. For lockers/safe custody articles: Bank must pay ₹5,000 per day of delay. 

Missing Persons

In cases where a person is missing a court order declaring civil death must be provided. However, if the amount is below ₹1 lakh, settlement can be done using FIR + non-traceable report. 

Claim Filing Made Easier

Banks must provide standard claim forms in branches and online. Allow claim submission at any branch. Offer online claim lodging and tracking facilities.

Why This Matters

The revised directions close widespread gaps where banks followed inconsistent methods, often causing delays and forcing grieving families to engage in legal processes unnecessarily. The introduction of strict deadlines and compensation mechanisms marks a significant shift toward customer protection and accountability.

Conclusion

The RBI’s 2025 Directions bring uniformity, speed, and transparency to claim settlement procedures and make it easier for nominees and legal heirs to access their rightful funds and assets, especially during emotionally difficult times.

Read More: Relief to PVR: ITAT Confirms Entertainment Tax Subsidy as Capital Receipt