The Reserve Bank of India (RBI) is proposing new, standardized rules to make it easier and faster for families to settle the bank accounts, lockers, and other assets of a loved one who has passed away. The draft circular aims to create a uniform process across all banks, eliminating the current, often confusing, variety of procedures. The public has until August 27 to provide feedback.
Here are the key highlights of the proposal:
- 15-Day Deadline: Banks would be required to settle all claims within 15 days of receiving the necessary documents. If a bank causes a delay, it will face penalties.
- Compensation for Delays: If a bank is responsible for a delay, it will have to pay a penalty. For deposit claims, the bank will owe interest at the Bank Rate plus 4%. For locker or safe custody items, the penalty is ₹5,000 per day.
- Simplified Forms: The RBI is introducing standardized claim forms that all banks must use. These forms, along with a list of required documents and step-by-step instructions, must be available both in branches and on bank websites.
- Easier Process for Nominees: If a nominee is registered, the process will be straightforward. They will only need to submit a claim form, a death certificate, and identity proof.
- Claims Without a Nominee: For claims without a nominee, the process will be simplified for amounts up to a minimum of ₹15 lakh. In these cases, banks will not insist on a legal heir or succession certificate, but may require other documents like an indemnity bond and no-objection letters from other legal heirs. For claims exceeding this amount, a legal heir or succession certificate will still be required.
If approved, these new rules are expected to take effect by January 1, 2026.