Deceased Claim Settlement If a loved one passes away and leaves money in a bank account or valuables in a locker, families often face long delays before they can access it. The RBI now wants to change that and make the process faster and fairer.
What’s Changing?
The RBI has proposed a 15-day deadline for banks to settle claims—starting from the day they receive all required documents.
- This applies to both money in bank accounts and items kept in safe deposit lockers.
- If the bank delays beyond the deadline, they’ll have to pay compensation to the claimant.
How Will Compensation Work?
For bank account claims: They must pay the deposit amount with bank rate interest (currently 5.75%) plus 4% extra per year.
- For locker claims: They must pay ₹5,000 per day of delay.
- In short, delays will now cost the bank—not the family.
Which Documents Will You Need?
If there’s a nominee on the account: Only three things—Death Certificate, Claim Form, and valid ID proof.
If there’s no nominee:
- Indemnity Bond
- No Objection Certificate (NOC) from other legal heirs
- Legal heir certificate
Banks will also have to clearly list these requirements and the process on their websites and in branches.
Another Important Rule
Banks should have systems in place to handle claims up to at least ₹15 lakh quickly and without unnecessary delays.
When Will This Start?
Right now, this is still a draft proposal. The RBI has invited public feedback until 27 August 2025.
If approved, the final rules are expected to take effect from 1 January 2026.