RBI Proposes 15-Day Rule and Penalties for Delays in Settling Deceased Customers’ Accounts

The Reserve Bank of India (RBI) has released a draft circular to make it quicker and easier for families or legal heirs to claim money, valuables, or locker contents of deceased customers. Under the proposal, banks will have just 15 days to settle claims once all necessary documents are submitted. These rules are set to come into effect on or before January 1, 2026, and public feedback is open until August 27, 2025.

Standardised Forms and Document Requirements

Banks will be required to use standardised claim forms and clearly display the list of required documents both online and at their branches.

• If a nominee is registered: Only a claim form, death certificate, and valid ID/address proof will be needed.
   
• If there’s no nominee: For claims up to ₹15 lakh, extra documents like an indemnity bond, no-objection letters from other legal heirs, and a surety will be needed. For claims above ₹15 lakh, a legal heir or succession certificate, or a declaration of legal heirs, will be required.

Also Read: Upcoming Dividends in August 2025!

Penalties for Delays

If banks fail to meet the 15-day deadline:

• Deposit accounts: Compensation will be paid at the Bank Rate plus 4% interest per year.
• Lockers: ₹5,000 per day will be paid for the delay.

Conclusion

RBI’s move aims to reduce the stress on grieving families by simplifying the claims process, enforcing strict timelines, and penalising delays, ensuring faster access to funds and valuables.

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