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Informist, Friday, Sept. 26, 2025

 

MUMBAI – The Reserve Bank of India Friday issued directions on settlement of claims of deceased customers of banks. The directions aim to standardise the documentation for settlement of claims for deposit accounts in banks and articles kept in safe custody or safe deposit lockers of the deceased bank customers. Banks must align their operations according to the directions not later than Mar. 31, the central bank said. 

 

In cases where the deceased depositor has not made any nomination, banks have been asked to adopt a simplified procedure for settlement of claims in cases where the aggregate amount payable is less than the threshold limit. The RBI has fixed the threshold limit for cooperative banks at INR 50,000 and INR 1.5 million for any other banks. In cases where the amount is above the threshold limit, the bank may ask for additional documents like a succession certificate or a legal heir certificate, the directions said.

 

Banks will have to settle claims for deposit accounts of a deceased customer within 15 calendar days from the date of receipt of all the claim documents. "In case of safe deposit locker/ articles in safe custody, the bank shall, within 15 calendar days of receipt of all the required documents, process the claim and communicate with the claimants for fixing the date for making inventory of the locker/ articles in safe custody," the RBI said.

 

If any deposit-related claim is not settled within this timeframe, the bank will communicate the reasons for such delay to the claimant. Further, in cases of delay attributable to the bank, it will have to pay a compensation in the form of interest at 4% over the prevailing Bank Rate on the settlement amount. In claims related to safe deposit locker and articles in safe custody, banks will pay compensation of INR 5,000 for each day of delay to the claimants.

 

The RBI had released draft directions on the same on Aug. 7. RBI Governor Sanjay Malhotra had said the move is expected "to make settlement more convenient and simpler". Banks held INR 670 billion worth of unclaimed deposits as of Jun. 30, Minister of State for Finance Pankaj Chaudhary had said in a written reply to a question in the Lok Sabha at the end of July. Out of INR 670 billion, public sector banks held INR 583.30 billion unclaimed deposits while private banks had INR 86.74 billion, Chaudhary said.  End

 

Reported by Srijita Bose

Edited by Ashish Shirke

 

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