The Reserve Bank of India (RBI) has announced a historic relief for the family members of deceased account holders. Now, the nominee or legal heir of the deceased person will be able to easily claim up to ₹15 lakh from their bank account balance. Previously, family members had to go through complex procedures to file a claim, but the new rules have significantly simplified this process.
Separate Claim Limits for Banks and Cooperative Banks
The RBI has set this limit at ₹15 lakh for ordinary banks. This means that nominees or heirs can now apply for deposits up to ₹15 lakh under a simplified procedure. This limit has been set aside for cooperative banks. For urban and rural cooperative banks, this limit will be ₹5 lakh. That is, upon the death of a cooperative bank customer, their family members can claim up to a maximum of ₹5 lakh.
Required Documents and Procedure for Claiming
As per RBI guidelines, family members must submit certain documents to file a claim. These include a claim form, death certificate, valid ID of the claimant, indemnity bond, and disclaimer letters from other heirs (if applicable). Most importantly, banks will no longer be allowed to demand third-party surety bonds. Banks can also accept a valid heir certificate or a declaration from an independent person.
Claim Settlement within 15 Days and Penalties for Delays
RBI has strictly instructed banks to complete the claim process within 15 days after receiving all the required documents. This deadline applies to both deposits and locker/safe deposits. Deposits must be settled within 15 days, while locker and safe deposits must have a listing date within 15 days.
If banks delay the claim process, they will be penalized. In the case of deposits, the bank will have to pay an additional interest of 4% per annum over and above the interest rate on the deposit. In the case of locker or safe deposits, a penalty of ₹5,000 per day will be imposed.
When will the new rule take effect
This new framework will replace the old rules and will become effective by March 31, 2026, i.e., by the end of the current financial year. The RBI has also directed banks to implement it as soon as possible. While filing a claim previously involved lengthy processes and delays, filing claims up to ₹15 lakh will now be easy upon submitting the required documents. This move will not only protect customer rights but also increase transparency in the banking system.