The Reserve Bank of India has issued revised directions creating a harmonised framework and standardised documentation for banks to settle claims relating to deceased customers’ deposit accounts, safe deposit lockers and articles in safe custody, citing divergent practices across banks. The directions apply to all commercial banks and co-operative banks, but exclude Government savings schemes administered by banks such as the Senior Citizen Savings Scheme and Public Provident Fund. For deposit accounts with a registered nominee or survivorship clause, payment to the nominee or survivor is treated as a valid discharge of the bank’s liability subject to due diligence on identity and proof of death, absence of a restraining court order, and written clarification that the recipient acts as trustee for legal heirs. In such cases, banks must not insist on succession-related legal documents or indemnity or surety, regardless of the balance, and are limited to a claim form, death certificate and an Officially Valid Document. For accounts without nomination or survivorship, a simplified procedure applies where the aggregate amount payable is below the threshold limit and there is no will, dispute or restraining court order, with the threshold set at INR 5 lakh for co-operative banks and INR 15 lakh for other banks (or higher if set by the bank); above-threshold claims require additional legal documentation and may involve third-party surety. Parallel procedures are set for lockers and safe custody, including inventory requirements and rules for minor nominees, and claims for missing persons generally require a court order declaring civil death, with an exception permitting FIR and a non-traceable police report for claims below INR 1 lakh (or a higher bank-set limit). The directions also require banks to allow premature termination of term deposits on a depositor’s death without penal charges, and to return post-settlement credits received in the deceased customer’s name to the remitter with an “Account holder deceased” remark. Operationally, banks must use standardised forms (Annex I-A to I-H), make them available at branches and on their websites, allow claim lodging at any branch (and optionally online with tracking), and settle deposit claims within 15 calendar days of receiving all required documents; for lockers and safe custody, banks must process claims and communicate to fix an inventory date within 15 calendar days of receiving all required documents. Delays attributable to the bank trigger compensation of at least Bank Rate plus 4% per annum on delayed deposit settlements, and INR 5,000 per day for delays in locker or safe custody claims. Banks must implement the directions as expeditiously as possible and no later than March 31, 2026, at which point specified earlier RBI circulars are repealed.
Reserve Bank of India 2025-09-26
Reserve Bank of India issues directions to standardise banks’ settlement of deceased customer claims with threshold-based simplified procedures and delay compensation
The Reserve Bank of India has issued revised directions for banks to standardize the settlement of claims related to deceased customers' deposit accounts, safe deposit lockers, and articles in safe custody. The framework applies to all commercial and co-operative banks, excluding government savings schemes, and includes procedures for accounts with and without nominees, as well as for lockers and safe custody. Banks must settle claims within 15 days of receiving required documents, with compensation for delays, and implement the directions by March 31, 2026.