New Banking System: The new rules also standardise documentation to improve the quality of customer service.
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New Banking System: The Reserve Bank of India (RBI) on Friday issued new norms with improvements to ensure that banks settle claims related to accounts and lockers of deceased customers within 15 days. The RBI stated that a provision has been made to compensate nominees in case of delayed settlement. This means that if a nominee does not receive the claim within the stipulated time after a person’s death, banks will also be required to provide separate compensation. The new guidelines aim to simplify banks’ processes for settling claims related to deceased customers.
New rules will be implemented by March 31, 2026
The new rules also standardize documentation to improve the quality of customer service. The central bank stated, “The new guidelines, ‘Reserve Bank of India (Settlement of Claims in Respect of Deceased Customers of Banks) Directions, 2025,’ will be implemented as soon as possible.” This will have to be implemented by March 31, 2026.” These instructions relate to claim settlement of deposit accounts, safe deposit lockers and articles kept in safe custody of the deceased customer. RBI said that in such deposit accounts where the deceased customer has nominated someone, payment of the outstanding amount to the nominee after the death of the customer will be considered as a valid discharge from the bank’s liability.
What will be the rules for bank accounts without a nominee?
The Reserve Bank of India (RBI) stated that banks have been instructed to adopt a simplified process for claim settlement in bank accounts where no nominee has been designated, and where the total amount payable is below a certain threshold. This threshold is ₹5 lakh for cooperative banks and ₹15 lakh for other banks. Banks can set higher limits at their own discretion. The RBI stated that if the amount exceeds this threshold, the bank may request additional documents, such as a succession certificate or legal heir certificate.
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