RBI Draft Rules on Claim Settlement: 15-Day Deadline, ₹15-Lakh Limit Among 6 Key Changes
The Reserve Bank of India (RBI) has released a draft circular aimed at simplifying and speeding up the settlement of claims related to deposit accounts, safe deposit lockers, and articles in safe custody after a customer’s death. Issued on August 11, the draft — titled ‘Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025’ — is open for public feedback.
Key proposals include:
- Faster Settlement – Banks must settle deposit claims within 15 days of receiving all required documents.
- Locker & Safe Custody Timeline – The inventory process for lockers or articles must begin within 15 days.
- Penalties for Delay – For deposits, banks must pay interest at the Bank Rate + 4% p.a. for the delay period; for lockers/articles, a penalty of ₹5,000 per day applies.
- Simplified Claims with Nominee/Survivorship Clause – Only three documents will be needed: claim form, death certificate, and nominee/survivor’s ID and address proof. No legal papers like succession certificates will be required.
- ₹15-Lakh Threshold for Claims Without Nominee – For amounts up to this limit, a simplified process will apply. Higher amounts may need additional legal documents such as a succession certificate or affidavit.
- No Penalty on Premature Withdrawal After Death – Term deposits can be closed without penalty even during the lock-in period.
Other provisions include:
- For joint accounts, surviving holders can withdraw funds if a prior mandate exists.
- In missing person cases, claims can be processed based on a court’s presumption of death, or — for small amounts — using an FIR, non-traceable report, and indemnity letter.
- Banks must adopt a standard claim form across branches, provide it online, and allow customers to lodge and track claims digitally.
- Banks are to promote the nomination facility and survivorship clauses to reduce legal hurdles for heirs.
The RBI says the proposed changes are intended to make claim settlement faster, smoother, and more customer-friendly.
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