Context:
The Reserve Bank of India (RBI) has issued a draft circular titled Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025 to standardise and simplify the process for settling claims on bank accounts and safe deposit lockers of deceased customers.
Key Proposals
- Standardised Forms: Banks will be mandated to use uniform claim forms and document checklists for processing claims.
- Settlement Timeline: Banks are required to settle claims within 15 calendar days of receiving all necessary documents.
- Compensation for Delay: If banks fail to settle claims within the stipulated time, they must pay compensation to nominees at a rate of Bank Rate + 4% per annum on the settlement amount for the delay period. For locker-related claims, a penalty of â‚ą5,000 per day of delay is proposed.
Documents and Procedures
- If Nominee Exists: Nominee must submit the claim form, deceased’s death certificate, and valid identity/address proof.
- If No Nominee:
- Banks will fix a threshold limit, with a minimum of â‚ą15 lakh, for simplified claim settlements.
- Claims up to threshold require bond of indemnity/surety and disclaimer/no objection letters from other legal heirs (if applicable).
- Objective
- To reduce inconvenience and undue hardship to claimants/legal heirs, and improve the efficiency and transparency of claim settlements post customer’s demise.
