Mumbai, September 27, 2025 — The Reserve Bank of India (RBI) has issued comprehensive new guidelines to streamline and expedite the settlement of claims related to deceased bank customers. The revised framework, titled Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025, aims to eliminate divergent practices among banks and improve customer service across the sector. The new norms must be implemented by all banks no later than March 31, 2026.
Under the updated directions, banks are now required to settle claims on deposit accounts, safe deposit lockers, and articles in safe custody within 15 calendar days from the date of receipt of all necessary documents. In cases where delays are attributable to the bank, compensation must be paid to the claimant. For deposit-related claims, the compensation will be in the form of interest at a rate not less than the prevailing Bank Rate plus 4 percent per annum. For locker or safe custody claims, banks will be liable to pay ₹5,000 per day of delay.
The RBI has also standardised documentation requirements. For accounts with a registered nominee or survivorship clause, payment to the nominee or survivor will be considered a valid discharge of the bank’s liability. Legal documents such as succession certificates or probate of will are not required in such cases. For accounts without a nominee or survivorship clause, banks must adopt a simplified procedure if the claim amount is below a threshold—₹5 lakh for cooperative banks and ₹15 lakh for other banks. Claims exceeding these limits may require additional documentation, including succession certificates or legal heir certificates.
The guidelines also permit premature termination of term deposits without penalty in the event of the depositor’s death, even if the deposit is within its lock-in period. Banks are further instructed to communicate reasons for any delay in claim settlement and to fix inventory dates promptly for locker-related claims.
The RBI’s move is expected to reduce procedural hurdles for nominees and legal heirs, ensuring faster and more transparent claim settlements. The central bank emphasized that the new framework is designed to minimize hardship for bereaved families and reinforce trust in the banking system.
