The loss of a family member is already a heavy emotional burden. What often adds to the distress is the long, uncertain process of accessing the deceased’s bank deposits, locker contents, or safe-kept articles.
Recognising this, the Reserve Bank of India (RBI) issued comprehensive Directions on September 26, 2025, applicable to all commercial and co-operative banks, effective March 31, 2026. These Directions standardise and simplify procedures, fix clear timelines, and ensure fair compensation for delay.
This post is a practical yet analytical guide to help families, nominees, and legal heirs understand and claim what is rightfully theirs.
Why These Directions Matter
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Earlier issues: Every bank had its own claim process. Some insisted on succession certificates even when a nominee existed. Claims dragged on for months.
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Now: RBI has made the system uniform, time-bound, and transparent, with a 15-day deadline and penalties on banks for non-compliance.
Applicability
Covered: All banks regulated by RBI, including scheduled commercial banks, RRBs, and co-operative banks.
Assets covered:
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Deposit accounts (savings, current, fixed deposits, etc.)
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Lockers
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Safe custody articles
Core Principles of the RBI Directions
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Nominee first: If a valid nominee exists, settlement must be simple and quick.
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Small claims simplified: For claims up to ₹15 lakh (commercial banks) and ₹5 lakh (co-operative banks) without nomination, banks must settle on the basis of simplified documents—no need for court orders.
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Strict timeline: Settlement within 15 calendar days of receipt of complete documents.
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Compensation for delay:
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Deposits: Bank Rate + 4% p.a. interest
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Lockers/articles: ₹5,000 per day
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Transparency: Banks must publish claim forms, checklists, and procedures on their website and in branches.
Procedure for Deposit Accounts
A. If Nominee Exists (or Joint Holder with Survivorship Clause)
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Submit: Claim form, Death certificate, ID proof of claimant
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Bank must release funds within 15 days.
B. If No Nominee, Claim ≤ Threshold (₹15 lakh / ₹5 lakh)
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Submit: Claim form + Death certificate + ID proof, Indemnity bond, Legal heir certificate or declaration by an independent person
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Bank cannot insist on surety.
C. If Claim Above Threshold / Multiple Heirs / Dispute
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Legal representation required: Succession Certificate, Probate, or Letter of Administration.
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In case of disputes among heirs, the bank must wait for a court order.
Settlement of Locker / Safe Custody Contents
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Nominee present: Nominee gets access after due verification.
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Joint hirers: Surviving hirer + nominee together.
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Minor nominee: Guardian mentioned in nomination form receives contents.
Inventory requirement: Bank must prepare an inventory within 15 days in the presence of nominee/legal heir and two independent witnesses.
Special Cases
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Death abroad: Foreign death certificate valid if authenticated by: Indian bank overseas branch, or Correspondent bank, or Judge/Notary abroad, or Indian Embassy/Consulate, or Apostilled as per Hague Convention.
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Missing person cases:
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Normally require court order declaring civil death.
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Exception: For small claims (≤ ₹1 lakh, or higher if bank policy permits) → FIR + police “non-traceable” report accepted.
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Bank’s Obligations
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Provide claim forms online and in branches free of cost.
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Accept and acknowledge claim applications with date-stamp.
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If documents are incomplete, issue a written list of pending documents.
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Ensure settlement within 15 days, or else pay compensation.
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Maintain internal monitoring and reporting to ensure compliance.
Compensation for Delay
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Deposits: Bank Rate + 4% p.a. interest for the delay period.
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Lockers/Articles: ₹5,000 per day of delay.
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Responsibility: Payment is mandatory; claimant need not prove loss.
Family Checklist
✔ Death certificate
✔ Claim form (downloadable from bank’s site)
✔ ID proof of nominee/heir
✔ Nomination details (if applicable)
✔ Indemnity bond (where required)
✔ Legal heir certificate or declaration (if no nominee, ≤ threshold)
✔ Succession certificate/probate (if above threshold or in dispute)
✔ FIR + police report (if missing person case)
Escalation Route
If bank delays or refuses without valid reasons:
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Write to the Branch Manager quoting RBI Directions.
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Escalate to the Bank’s Grievance Redressal Officer.
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If unresolved within 30 days → File a complaint with the Banking Ombudsman under RBI’s Integrated Ombudsman Scheme.
Key Takeaways
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Simple for nominees: Minimal documents, 15-day deadline.
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Simplified for small claims without nomination.
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Strict compensation for delays.
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Clear procedures for lockers, safe custody, foreign deaths, and missing persons.
Families now have a clear, uniform, and enforceable path to claim deposits and locker contents without unnecessary hardship.
