RBI Moots Standardized Forms for Claim Settlement Related to Deceased Customers

The draft circular issued by the Reserve Bank also has provisions for compensation for delay in the settlement of claims

- OUR CORRESPONDENT

MUMBAI: The RBI plans to standardize forms to process claims on deceased customers' bank accounts and lockers within a 15-day timeframe and provide compensation to nominees for any settlement delays.

The Reserve Bank of India (RBI) proposes to come out with standard procedures for the settlement of claims in respect of bank accounts, and articles kept in safe custody or safe deposit lockers of deceased bank customers. The aim is to make the settlement more convenient and simpler.

Towards this, the central bank has issued "Draft Circular - Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025" and invited comments and feedback on it by August 27.

"A bank shall use the standardized forms for receiving the claims and other documents...," said the draft.

It also has provisions for compensation for delay in the settlement of claims.

In case a nominee has been provided in deposit accounts or lockers, he or she would have to submit a claim form, death certificate (deceased customer), and an officially valid document of the nominee/survivor towards verifying identity and address, the draft said.

According to the draft, a bank should adopt a simplified procedure for settlement of claims in deposit accounts, where a deceased depositor had not made any nomination, keeping in view the imperative need to avoid inconvenience and undue hardship to the claimant/legal heir.