RBI Issues Revised Directions for Settlement of Deceased Customers’ Accounts and Lockers

The Reserve Bank of India (RBI) has issued the “Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025”, aiming to streamline and standardise procedures for settling claims on deceased customers’ bank accounts and safe deposit lockers.

Key Highlights:

Settlement Timeline:

• Claims must be settled within 15 calendar days of receiving all required documents.
• For safe deposit lockers and articles in safe custody, banks must process claims within 15 days and coordinate inventory with claimants.

Simplified Procedure for Small Deposits:

• Applicable when accounts lack a nominee or survivorship clause.
• Threshold limits:
  • Co-operative banks: Rs 5 lakh
  • Other banks: Rs 15 lakh (banks may set higher limits)
• Claims above threshold may require additional documents such as a succession certificate or legal heir certificate.

Standardised Documentation:

• Uniform documentation requirements to reduce divergence in banks’ practices.
• Payment to a nominee or survivor in accounts with nominations/survivorship clause is considered valid discharge of liability.

Compensation for Delay:

• If settlement is delayed due to the bank:
  • Deposit accounts: Interest at Bank Rate + 4% per annum on the due settlement amount.
  • Lockers/articles in safe custody: Rs 5,000 per day of delay.
• Banks must communicate reasons for delays to claimants.