The RBI has issued the (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025 to standardise and simplify procedures for settlement of claims in deposit accounts, safe deposit lockers, and articles in safe custody of deceased customers
1. Nominee/Survivorship Cases
If a deposit account or safe deposit locker has a registered nominee or is opened with a survivorship clause, banks must release funds or locker contents to the nominee(s)/survivor(s) on submission of the claim form, death certificate, and identity proof. This payment/access is considered a valid discharge of the bank’s liability. No legal documents like succession certificate, probate of Will, or bond of indemnity are required. In joint accounts, the nominee’s right arises only after the death of all account holders.
2. Accounts/Lockers without Nominee or Survivorship Clause
For deposit accounts or lockers without a nominee or survivorship clause, banks follow a simplified procedure for claims up to the threshold limit (₹15 lakh for banks; ₹5 lakh for co-operative banks). Required documents include claim form, death certificate, identity proof, indemnity bond, legal heir certificate or affidavit, and a no-objection/ disclaimer letter from other heirs, if applicable. Claims above the threshold, or those involving wills or disputes, require legal documents such as succession certificate, probate, or court orders.
3. Claims Involving Wills or Disputes
Claims based on a Will without dispute can be settled with probate/letter of administration, along with standard claim documents. If there is no dispute, banks may act on the Will without probate, provided it is genuine. In contested claims, banks must rely on probate, succession certificate, letter of administration, or court orders before settlement.
4. Missing Persons
For missing persons, claims are settled only after a competent court declares civil death under the Bharatiya Sakshya Adhiniyam, 2023. For small claims (up to ₹1 lakh or higher as permitted by the bank), banks may accept FIR and a non-traceable report from police authorities in lieu of a death certificate or civil death order.
5. Lockers and Articles in Safe Custody
Banks must allow nominee(s)/survivor(s) to access locker contents or articles in safe custody. For minors, access is given to the legally appointed guardian. Banks must prepare an inventory in the presence of nominees, claimants, two independent witnesses, and bank staff, and obtain acknowledgment of removal. Legal documents are not required unless there is a discrepancy in nomination.
6. Operational and Documentation Requirements
Banks must use standardised claim forms (Annex I-A to I-H), make them available at branches and on websites, and display the list of required documents and procedures. Claims can be lodged at any branch or online, with acknowledgment and tracking of the status provided to the claimant
Applicability: All commercial and co-operative banks (not applicable to Govt. savings schemes like SCSS, PPF)
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12901&Mode=0
