RBI streamlines norms for claim settlement related to deceased bank customers

Mumbai: The Reserve Bank of India (RBI) on Friday issued revised norms directing banks to settle claims on accounts and lockers of deceased customers within 15 days, with compensation mandated

for delays.

The new framework, titled “RBI (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025”, standardises documentation and aims to streamline varied practices across banks.

The norms must be fully implemented by March 31, 2026.

For deposit accounts with nominees or survivorship clauses, settlement to nominees/survivors will be treated as full discharge of liability.

Where no nomination exists, banks must follow a simpli-fied procedure if the claim is below Rs 5 lakh for cooperative banks and Rs 15 lakh for others.

Claims exceeding these thresholds may require additional documents such as succession or legal heir certificates.

The directions also cover safe deposit lockers and articles in custody. Banks must process such claims within 15 days of receiving documents and coordinate with claimants to inventory con-tents.

If delays occur due to the bank, compensation will be paid at Bank Rate + 4 per cent per annum on settlement amounts.

For lockers or custody articles, banks must pay Rs 5,000 per day of delay.