August 9, 2025

MUMBAI: The Reserve Bank of India (RBI) is making life easier for families who lose their loved ones and struggle to get their bank money or locker valuables. Starting January 1, 2026, banks must settle claims related to deceased customers within 15 days after getting all papers. If they delay, the banks will have to pay interest on the deposited money at the bank rate plus 4%! And if it’s about lockers, the penalty is Rs. 5,000 a day until they hand over the items. This bold new rule is part of the RBI (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025. The goal? To cut through the endless confusion and red tape that families often face. Instead of banks doing their own thing, now there’s a clear, uniform path for claimants - whether they are nominees, survivors, or legal heirs. The easiest way to claim is if there is a nomination or survivorship clause on the account or locker. If that’s there, banks must release funds or valuables without asking for complicated legal papers like succession certificates. Families only need to submit a death certificate, a claim form, and identification documents. But remember, claimants become trustees for the real heirs. If no nominee exists, banks have a simpler path for claims up to Rs 15 lakh. Just a declaration by the legal heir, no-objection letters from others, and basic proof will do. For bigger claims, more legal papers like succession certificates or affidavits may be needed along with surety-backed indemnities. Lockers will follow a similar process. Nominees or joint holders with survivorship rights get quick access after verification. If not, legal heirs can claim access with proper papers if there’s no dispute. The bank will make an inventory of the locker’s contents, with witnesses and officials present, and get a formal receipt from the claimant. The directions also handle tricky cases: if any money keeps coming into a dead person’s bank account, it will be sent back or kept safely in an estate account. Term deposits can be closed early without penalty when the depositor dies. To help, the RBI will provide standard forms online and in branches, and banks must spread word about the benefits of nomination. Why this big move now? Because unclaimed deposits are swelling, mostly due to banks dragging their feet on releasing money after death. RBI’s new framework is the much-needed spice to speed things up and bring ease to families, so money and valuables don’t remain stuck in limbo.

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Tags: Rbi, Deceased claims, Bank settlements, Locker access, Nomination, Unclaimed deposits,