RBI's New Initiative to Ease Asset Claims for Heirs

MUMBAI: In a significant move to streamline the process for heirs to claim assets from deceased clients, the Reserve Bank of India (RBI) is introducing a standardized procedure for banks to follow. This initiative aims to replace the current inconsistent practices across banks, ensuring a smoother transition for nominees and legal heirs to access funds or valuables without facing bureaucratic delays.

Auto-Bidding Feature Launched on Retail Direct Platform

Alongside, the RBI has unveiled an auto-bidding feature for its Retail Direct platform, designed to facilitate systematic investment planning. This feature allows investors to automatically place bids for Treasury-bill auctions, enhancing the accessibility and convenience of investing in government securities.

The Retail Direct platform, since its launch in 2021, has been progressively enriched with features, including a mobile app introduced in May 2024, to democratize access to sovereign debt investments for retail investors.

Current Challenges in Asset Release

Currently, the release of funds or valuables in the event of an account or locker holder's death varies significantly among banks, depending on the presence of a nominee, survivorship clause, or multiple legal heirs. The RBI's forthcoming draft circular seeks to address these inconsistencies by proposing a unified approach.