11 Aug 2025 : The Reserve Bank of India (RBI) has launched a major initiative regarding the settlement of claims related to deceased customers’ bank accounts and safe deposit lockers. Banks will now adopt a standardized process to resolve such complaints and claims within just 15 days. The aim is to reduce inconvenience for the relatives or legal heirs of deceased customers and ensure speedy justice.
RBI has recently issued a draft directive clarifying that banks will follow a consistent and simplified process for verifying and settling claims. Under the new rule, for accounts or lockers where a “nominee” has been designated, the nominee will be able to receive the funds or belongings quickly upon providing identification and the required documents. For accounts without a nomination, banks are also advised to adopt a simple and swift procedure so that heirs do not face unnecessary trouble.
According to the draft, if a bank delays the settlement of claims, it will be liable to pay compensation. This will help promote urgency and transparency in delivering justice to customers and their families. RBI has invited suggestions from the public and relevant institutions on this draft until August 27.
Currently, different banks have widely varying procedures for settling claims related to deceased customers’ accounts, which often causes hassles for families. This step will not only simplify the process but also ensure speed and transparency in handling matters related to the accounts and lockers of deceased customers.
Summary: The Reserve Bank of India has directed banks to fully settle deceased customers’ accounts within 15 days, aiming to streamline and speed up claim processing for beneficiaries.