The RBI has overhauled claim settlement rules for accounts of deceased customers, removing barriers that historically extended resolution timelines. Claims up to ₹15 lakh can now be processed without succession certificates, surety bonds, or other legal documents—a significant departure from prior practice.
Banks need only three pieces: a completed claim form, the customer's death certificate, and the claimant's ID or address proof. This stripped-down document set aims to reduce friction for families navigating bereavement while managing finances.
The 15-day settlement window is now mandatory, backed by enforcement teeth. Banks that miss the deadline face interest at Bank Rate plus 4 percentage points on the delayed amount. Locker claim delays incur an additional ₹5,000-per-day penalty.
The move reflects RBI's stated intent to make banking more customer-centric and transparent. However, lenders have flagged legitimate concerns: outdated nominee records and unclear instructions could open the door to fraudulent claims or disputed payouts, creating operational and reputational risk.
