At present, these processes are different in different banks. Due to this, customers have to face problems.
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Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday said the central bank will streamline and standardise the process for settlement of claims of bank accounts, lockers of the deceased. The initiative aims to simplify the process of settlement of claims in favour of nominees of deceased customers. Malhotra said that apart from this, the central bank is planning to expand the functionality of the RBI ‘Retail-Direct’ platform so that retail investors can invest in treasury bills (government securities) through systematic investment plans (SIPs). Giving information about the third bi-monthly monetary policy review of the current financial year, he said that we are taking steps to standardise the process of settlement of claims related to bank accounts and locker items of the deceased. This is expected to make the settlement more convenient and smooth.
Its aim is to settle claims quickly
Under the provisions of the Banking Regulation Act, 1949, the facility of ‘nominee’ is available in respect of deposit accounts, locker items. According to RBI’s statement on developmental and regulatory policies, the objective is to facilitate prompt settlement of claims or return of articles or safe deposit locker contents on the death of the customer and to reduce hardship to family members. As per the existing instructions, banks are required to adopt a simplified procedure to facilitate prompt and hassle-free settlement of claims made by ‘nominee’ persons/legal heirs. At present, these procedures vary in different banks. According to RBI, with a view to improving customer service standards, it has been decided to streamline the procedures and standardise the documents to be submitted to banks.
Draft to be issued soon
A draft circular in this regard will be issued for public consultation soon.” Currently, all banks have their own systems and procedures for claims relating to accounts and lockers by the ‘nominee’ of the deceased person. Similarly, there may be some variation in the procedures of banks for accounts without a ‘nominee’. This move will standardise and simplify the process.
