Banks' New Proposed Regulations to Streamline Swift Settlement of Estate-Related Accounts and Locker Claims for Deceased Depositors
The Reserve Bank of India (RBI) has proposed a new set of rules aimed at streamlining and standardising the process for settling claims on bank accounts and lockers of deceased customers. The draft circular, titled "Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025," was unveiled recently.
Under the new guidelines, banks will be required to use standard claim forms for receiving claims and supporting documents. This uniform procedure is designed to reduce confusion and facilitate a smoother claim submission process.
Banks have been instructed to settle claims within a 15-day deadline from the date of receipt of all required documents. Any delay beyond this period will result in the bank having to compensate the claimants or nominees. For locker or safe custody claims, the bank will pay a compensation of Rs 5,000 for each day of delay past the 15-day settlement period.
In claims up to Rs 15 lakh, the nominee, if registered, will need to submit the standard claim form, the deceased customer’s death certificate, and officially valid identity and address proof. In the absence of a nominee, banks will follow a simplified settlement procedure with the Rs 15 lakh threshold. Claims up to this limit will require additional documents such as a bond of indemnity, a surety, and a letter(s) of no-objection from non-claimant legal heirs (if applicable).
For claims exceeding Rs 15 lakh, stricter documentation is mandated, including a succession certificate or a legal heir certificate, to ensure legal compliance and security of the settlement.
The nomination facility available on deposit accounts, safe deposit lockers, and articles kept in safe custody is intended to expedite claim settlements and reduce hardship on family members by minimizing documentary requirements and disputes.
The draft also outlines provisions for cases where a deceased depositor has left a will without dispute, allowing banks to settle claims based on the will, subject to proper verification. However, detailed procedures for such cases were not fully elaborated in the search results.
The RBI intends to implement these revised regulations no later than January 1, 2026, to improve the quality of customer service in claim settlements. The public is invited to provide feedback on the draft circular by August 27, 2025.
In summary, the RBI’s draft directions focus on simplifying, standardising, and speeding up the claim settlement process for deceased customers' bank accounts and lockers. Fixed thresholds for documentation requirements, strict deadlines, and compensation rules aim to protect the interests of nominees and legal heirs. These reforms aim to bring uniformity across banks, reduce delays, and ease the procedural burden on claimants while safeguarding legality in high-value claims.
[1] Reserve Bank of India. (2025). Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025. [2] The Economic Times. (2025). RBI proposes new rules for settling claims on bank accounts, lockers of deceased customers. [3] The Hindu BusinessLine. (2025). RBI proposes new rules for settling claims on bank accounts, lockers of deceased customers. [4] LiveMint. (2025). RBI proposes new rules for settling claims on bank accounts, lockers of deceased customers. [5] The Times of India. (2025). RBI proposes new rules for settling claims on bank accounts, lockers of deceased customers.
Banks within the Indian industry will be under increased scrutiny to meet new financial regulations set by the Reserve Bank of India (RBI) regarding the settlement of claims on deceased customers' accounts and lockers. These measures are designed to standardize and streamline the process, with the banking-and-insurance sector expected to comply with the regulations by January 1, 2026. The RBI, along with various news sources such as The Economic Times, The Hindu BusinessLine, LiveMint, The Times of India, and RBI's own draft circular, have highlighted the introduction of stricter deadlines, fixed documentation thresholds, and compensation rules to safeguard the interests of nominees and legal heirs.
