RBI Introduces New Rules for Faster Payouts to Families of Deceased Customers

Starting January 1, 2026, the Reserve Bank of India (RBI) will enforce new regulations requiring banks to compensate families for delays in accessing the funds and valuables of deceased relatives.

For deposits, banks will owe interest at the bank rate plus 4% for any delays beyond 15 days after receiving complete documentation. For lockers, the penalty is set at Rs. 5,000 per day.

Simplified Procedures for Claimants

The RBI's new framework aims to streamline the settlement process, offering a uniform roadmap for nominees, survivors, or legal heirs. Nominations or survivorship clauses will allow for the release of funds or valuables without the need for legal papers, requiring only a death certificate, a claim form, and identification documents.

Handling Lockers and Larger Claims

For lockers, access will be granted to nominees or joint holders with survivorship rights upon verification. For claims up to Rs 15 lakh without a nominee, a simplified procedure requiring a legal heir's declaration and no-objection letters from other heirs will suffice. Larger amounts may require succession certificates or affidavits.

Addressing Unclaimed Deposits

The RBI's move comes in response to the growing volume of unclaimed deposits, much of which stems from banks' reluctance to release funds of deceased customers. Standardised forms and increased publicity about the benefits of nominations are part of the effort to reduce these unclaimed assets.