RBI Sets 15-Day Deadline for Settlement of Claims of Deceased Bank Customers

The Reserve Bank of India (RBI) has released fresh directions for banks on the settlement of claims related to deceased customers. Reports suggest that the norms apply to deposit accounts, safe deposit lockers, and articles in safe custody. 

These guidelines will come into force by March 31, 2026, replacing earlier varied practices followed by banks.

Scope of the Directions

The rules cover accounts where a nomination or survivorship clause exists, as well as accounts without such provisions. In cases where a nominee or survivor is registered, payment made to them will be treated as a valid settlement. For accounts without these provisions, banks must follow a simplified procedure when the claim amount is below certain limits.

Documentation Required

To process claims, nominees must submit a claim form, the death certificate, and an officially valid identity and address proof. These documents are mandatory and are aimed at reducing disputes in the settlement process.

Timelines for Settlement

Banks will have to settle claims within 15 calendar days of receiving all required documents. This timeline is also applicable to lockers and safe custody articles. For lockers, banks must also fix a date to prepare an inventory and inform the claimant.

Compensation Rules

In cases of delays attributable to banks, compensation will be payable. For deposit accounts, interest at Bank Rate + 4% per annum will apply on the claim amount for the delayed period. For lockers or safe custody articles, compensation will be ₹5,000 per day of delay.

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Conclusion

The revised norms provide clear timelines, standardised documents, and compensation rules. They are intended to reduce delays and bring consistency in claim settlements across banks.

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