RBI Proposes Standardised Claim Settlement for Deceased Customers

The Reserve Bank of India (RBI) has unveiled a draft circular aimed at standardising the process for settling claims related to bank accounts, safe deposit lockers, and articles in safe custody of deceased customers. With a strict 15-day deadline, the proposal also includes penalties for delays, ensuring a smoother and more uniform process across all banks.

Standard Forms and Simplified Procedures

The draft mandates the use of standardised forms for claims and supporting documents. In cases with a nominee, only a claim form, death certificate, and valid identity and address proof are required. For claims without a nomination, simplified procedures are introduced, with a minimum threshold of Rs 15 lakh.

Compensation for Delays

Banks failing to meet the 15-day deadline will face penalties, including interest payments on the settlement amount for deposit-related claims and a daily fine of Rs 5,000 for delays in locker or safe custody claims. This move is designed to expedite settlements and reduce hardships for families.

Implementation Timeline

The proposed regulations are set to be implemented by January 1, 2026, marking a significant step towards improving customer service and standardising documentation across the banking sector.