RBI sets 15-Day timeline for settlement of deceased customers claims

New Delhi: The Reserve Bank of India (RBI) has introduced new rules requiring banks to settle claims related to deceased customers’ accounts and lockers within 15 days, with an additional provision of compensation in the event of delays. The guidelines that are set to be effective from March 31, 2026, are aimed at improving efficiency, transparency, and customer service in handling such sensitive cases.

The new rules apply to claims related to deposit accounts, safe deposit lockers, and bank safes. Where nomination or survivorship clauses exist, the bank must release the outstanding amount directly to the nominee or survivor, treating it as a full discharge of liability.

For smaller claims that are up to Rs 5 lakh in cooperative banks and Rs 15 lakh in other large scheduled banks, a simplified procedure will apply. In order to facilitate larger claims, banks may still require legal documents such as succession certificates from the deceased families.

Additionally, the new rules entail banks must settle claims on lockers and on safes within 15 days of receiving all required documents. After consulting with the claimant, they must also schedule a date for conducting the inventory of the locker.

For settlement regarding the deceased's deposit accounts, if banks are unable to settle claims within the stipulated time period of 15 days, a written reason for the delay of settlement will have to be provided, and interest will have to be paid at the prevailing rate plus 4 percent annually for the duration of the delay. For locker or safe claims, compensation of Rs 5,000 per day will apply for missed deadlines.

By standardising documentation and enforcing strict timelines, the RBI aims to make the claims process quicker, more transparent, and less burdensome for nominees and survivors.