Mumbai, Sep 26: The Reserve Bank on Friday issued revised norms for the settlement of claims on deceased customers’ bank accounts and lockers within a 15-day timeframe and prescribed compensation to nominees for delays in the settlement.
The revised instructions are aimed at streamlining the divergent practices followed by banks in the settlement of claims in respect of deceased customers. It has also standardised the documentation to bring improvement in the quality of customer service.
The central banks said the ‘Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025’ revised instructions will be implemented as expeditiously as possible, but not later than March 31, 2026.
The directions are related to the settlement of claims in the deposit accounts of a deceased customer, safe deposit locker and articles in safe custody by the deceased customer.
A deposit account where a depositor had made a nomination or where the account was opened with a survivorship clause, the payment of the outstanding balance upon the death of the depositor(s) to the nominee(s)/ survivor(s) shall be considered a valid discharge of a bank’s liability, the RBI said.
