What the guidelines say :-
The key directions (under the draft/updated document titled “RBI (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025”) are as follows:
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Settlement timeline of 15 days
Banks are required to settle claims relating to a deceased person’s-
deposit accounts,
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safe deposit lockers, and
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articles in safe custody
within 15 calendar days of receiving all the requisite documents from the claimant.
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Simplified procedure when nomination exists
If there is a nominee or a survivorship clause in the account, banks must treat payment to the nominee/survivor as a valid discharge of the bank’s liability. Only minimal documentation is required: death certificate of the account-holder, claim form, identity proof and address proof of claimant. -
Simplified procedure for non-nomination up to threshold
In cases where there is no nominee (and no will or survivorship clause):-
For claims up to a threshold — Rs 15 lakh in commercial banks, Rs 5 lakh in cooperative banks — a simplified process applies.
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The claimant may need a death certificate, identity proof, claim form, perhaps a legal heir certificate or a declaration in an RBI-specified format, and in some cases a “no-objection” from other legal heirs.
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For amounts above the threshold, banks may ask for additional documents such as a succession certificate, legal heir certificate, court probate of will, etc.
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Penalties / compensation for delays
If the bank delays the settlement beyond the 15-day period (after all documents are received):-
For deposit accounts: the bank must pay interest at the “bank rate + 4%” per annum for the delay period.
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For locker / safe custody claims: the bank must pay a flat amount of Rs 5,000 per day of delay (for delay attributable to the bank) in respect of the locker claim.
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Implementation deadline
The guidelines are to be implemented not later than March 31, 2026. Some earlier reports mention January 1, 2026.