RBI Plans to Ease Claim Process for Deposits and Lockers of Deceased Customers

The Reserve Bank of India (RBI) has proposed a standardised procedure for settling claims related to bank deposits and lockers of deceased individuals, as per news reports. This is for reducing delays and inconsistencies faced by nominees or legal heirs when accessing funds or items held in banks.

Uniform Procedure Across Banks

Currently, each bank follows its own set of documentation requirements for processing such claims. This results in varying procedures, especially in cases where no nominee is registered. The RBI noted that this variation often leads to delays and added inconvenience for customers’ families.

Nomination Framework and Legal Provisions

The Banking Regulation Act, 1949, provides for a nomination facility for deposit accounts, articles kept in safe custody, and safe deposit lockers. This is meant to allow banks to release funds or locker contents to nominees without requiring a succession certificate or legal documents.

Draft Circular for Public Consultation

To streamline the process, the RBI will issue a draft circular for public consultation. The goal is to standardise the list of documents required and make sure the banks adopt a simplified and consistent approach. The central bank stated that this change is for improving customer service standards.

Expansion of the RBI Retail Direct Platform

Separately, the RBI also announced the extension of services on its Retail Direct platform. A new auto-bidding feature has been introduced for Treasury Bills (T-Bills), allowing retail investors to schedule recurring investments. This includes both fresh and reinvestment options under a Systematic Investment Plan (SIP) model.

About Retail Direct Platform 

Launched in November 2021, the Retail Direct portal enables individuals to invest in government securities. The RBI added a mobile app for the platform in May 2024, improving accessibility. The latest updates are intended to facilitate long-term planning for small investors.

Read More: RBI Holds Repo Rate Steady at 5.5%: Policy Stance Maintained at Neutral!

Conclusion

The proposed changes are to simplify post-death settlement procedures and introduce consistency across banks. Public feedback on the draft circular will be considered before implementation. Meanwhile, retail investors can expect easier access to government securities through the upgraded Retail Direct platform.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.