The Reserve Bank of India (RBI) has come out with updated and streamlined guidelines for settlement of claims in case of death of customers. It was noticed that many families faced delays and confusion as the banks were following different procedures and documentation to settle dues of deceased customers. New Guideline “Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025” issued onSeptember 26, 2025 (Notification No. RBI/2025-26/82) will hopefully ensure faster, transparent, and uniform claim settlements across all commercial and cooperative banks by or before March 31, 2026. Let us explore this guideline in brief:
Scope: The Directions apply to claims related to:
- Deposit accounts (savings, current, term deposits, etc.)
- Safe deposit lockers
- Articles kept in safe custody
Settlement related to Deposits:
| S. No | Scenario | Key Provisions | Documents Required |
| 1. | If Nominee / Survivorship details are there |
|
Claim Form (Annex I-A)
– Death Certificate – ID Proof of Nominee/Survivor |
| 2. | If No Nominee / Survivorship Clause | Simplified procedure for small claims:
|
– Claim Form (Annex I-B)
– Death Certificate – ID Proof – Indemnity Bond (Annex I-C) – No-objection Letters (Annex I-D) – Legal Heir Certificate or Affidavit |
| 3. | In Case of a Will |
|
-Copy of the Will
– ID Proofs of Heirs / Beneficiaries |
| 4. | Premature Withdrawal of Fixed Deposits |
|
– Claim Form
– Death Certificate – ID Proof of Claimant |
| 5. | Missing Persons |
|
-Court Order / FIR + Non-traceable Report
– Claim Form – ID Proof |
Settlement of Locker and Safe Custody Claims
1. With Nominee or Survivorship Clause
- The nominee or survivor can access and remove the contents.
- No legal documents like Succession Certificate are needed unless there’s a dispute.
- The bank must prepare an inventory of contents in the presence of witnesses before handover.
2. Without Nominee or Will
- The process will be similar to deposit claims.
- If there’s no dispute, a legal heir certificate or affidavit with standard claim forms will suffice.
- An independent valuer may assess locker contents before release.
Timelines and Compensation
For Deposit Accounts:
Claims must be settled within 15 calendar days from the date all required documents are received.
Compensation for delay: Bank must pay interest at Bank Rate + 4% per annum on the claim amount for the delayed period.
For Lockers / Safe Custody Articles:
The inventory of locker contents must be completed within 15 days of receiving the claim.
Compensation for delay: Bank must pay a penalty of ₹5,000 per day for each day of delay beyond the prescribed timeline.
The RBI Directions will put an end to the divergent practices being followed by the banks. It will reduce the pain areas of claimants and bring about uniformity and transparency.
In case you are any query or need any support in claiming the deposit/dues in case of deceased customers of banks or need any clarification, you may like to connect with us.
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Abhinarayan Mishra FCA, FCS, LL.B, IP, RV; Partner, KPAM & Associates, Chartered Accountants, SAM Law Associates LLP, New Delhi ; +91 9910744992; ca.abhimishra@gmail.com; samlawassociates18@gmail.com
Author Bio
Thank you Sir for this post. But when I downloaded the PDF of this circular from RBI, it had the word “Withdrawn” in green ink stamped on every page 🙁 What happened ! Now what to do ? I am trying to claim locker contents above Rs. 15 lakhs (no nominee) along with my sibling. But the bank wants a court order and surety.
Sure Sir!
Sir GM
I read circular of latest deceased claim settlement of RBI very simple language and understanding Ty sir any query about circular i will call youy. Ty again