RBI's big decision! Claims related to deceased customers' accounts and lockers will now be settled within 15 days, and banks will compensate for any delay.

RBI New Rules: The Reserve Bank of India has issued revised norms for banks to settle claims related to deceased customers' accounts and lockers within 15 days.

RBI New Rules: The Reserve Bank of India (RBI) has issued new guidelines for banks to facilitate the quick and easy settlement of claims related to a customer's bank account, locker, or other deposit after their death.

Claims will be settled within 15 days.

The Reserve Bank of India has issued revised norms for banks to settle claims related to deceased customers' accounts and lockers within 15 days. The Reserve Bank stated that a provision has been made to compensate nominees in case of delays in settlement.

What is the main objective of the new rules?

To ensure that banks ensure that the nominee or legal heir of a deceased customer receives the money or items promptly.

Making the claims settlement process simple and transparent.
Making it mandatory to settle claims within 15 days.
Banks will have to pay compensation in case of delays.

When will these new rules come into effect?

The central banks stated that the revised Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025, will be implemented as soon as possible. It must be implemented by March 31, 2026.

What will happen in the case of nominees?

The RBI stated that in deposit accounts where the depositor has nominated someone, payment of the outstanding amount to the nominee upon the depositor's death will be considered a valid discharge from the bank's liability.

What if there is no nominee?

In accounts where no nominee has been nominated, banks have been asked to adopt a simplified process for settling claims where the total amount payable is below a prescribed limit. This limit is ₹5 lakh for cooperative banks and ₹15 lakh for other banks. Banks can set higher limits at their own discretion.

If the claim exceeds this limit, the bank may request additional documents, such as a succession certificate or legal heir certificate.

What happens if the bank delays?

If the bank fails to settle the claim within 15 days, it will be required to compensate the nominee. The compensation amount will be determined later.

Who will these rules apply to?

Deposit accounts such as savings accounts and fixed deposits
Safe deposit lockers
Safe custody – other items kept in the bank

What does this mean for you?

If a family member dies and their money or belongings are in the bank, you will no longer have to go through lengthy legal hassles or court proceedings. The bank will complete the process within 15 days. The nominee will receive the payment or goods promptly.

Conclusion

This move by the RBI is very important in improving customer convenience and transparency. This will provide significant relief, especially to the elderly, rural areas, and middle-class families.

News FAQs

Q1. Who is this new rule for?

This rule applies to cases where a bank customer dies and their nominee or legal heir has to claim their bank account, locker, or other items deposited with the bank.

Q2. What changes has the RBI made?

Claims must now be settled within 15 days. The bank will have to compensate for any delay.

Q3. How will the nominee receive the money?

If the deceased customer has already added a nominee, the bank can make the payment directly to that nominee without any legal hassles.

Q4. Will all banks have to implement this rule?

Yes, all public, private, and cooperative banks must implement this rule by March 31, 2026.

Q5. What happens if the bank doesn't settle the claim within 15 days?

A will have to pay compensation to the concerned nominee or heir.