RBI Issues New Rules: Banks Must Settle Deceased Customer Claims Within 15 Days

The Reserve Bank of India (RBI) on Friday issued new regulations with significant improvements to ensure banks settle claims related to deceased customers’ accounts and lockers within just 15 days. The RBI also made a significant announcement, including a provision for compensation to the nominee in case of a delay in claim settlement.

This means that if the nominee does not receive the claim amount within the stipulated time after a person’s death, banks will also be required to provide separate compensation. These new guidelines aim to significantly simplify banks’ processes for settling claims related to deceased customers.

Claims Mandatory for Nominee within 15 Days

These new regulations will come into effect from March 31, 2026. The new rules also standardize documentation to improve the quality of customer service. The central bank stated, “These new guidelines, the ‘Reserve Bank of India (Settlement of Claims of Deceased Customers) Directions, 2025,’ will be implemented as soon as possible.”

These guidelines relate to the settlement of claims for deceased customers’ deposit accounts, safe deposit lockers, and safe custody items. The RBI clarified that in deposit accounts where the deceased customer had nominated someone, payment of the outstanding amount to the nominee after the customer’s death will be considered a valid discharge from the bank’s liability.

What will be the rules for accounts without a nominee?

The Reserve Bank of India has directed that banks adopt a simplified claim settlement process for bank accounts where the total amount payable is below a specified limit.

Simplified Claim Limit

• This limit is ₹5 lakh for cooperative banks.
• This limit is ₹15 lakh for other banks.

Banks may set higher limits at their discretion. The RBI clarified that if the amount exceeds this limit, banks may require additional documents such as a Succession Certificate or Legal Heir Certificate. This excellent step will provide significant relief to the public from the lengthy and complex legal process of succession.