The Reserve Bank of India (RBI) released a game-changing draft circular in August 2025, aimed at transforming how banks handle claims after a customer’s death. The proposed rules, set to be implemented from January 1, 2026, promise a standardized, time-bound and customer-friendly process for settling claims related to bank accounts, lockers and valuables in safe custody. Losing a loved one is hard enough; battling red tape to access their bank assets shouldn’t be.
Why is this important now?
For years, bereaved families have faced long delays, unclear procedures and inconsistent requirements across banks. The RBI’s new approach intends to end this confusion and make sure families get what they’re rightfully owed quickly, clearly and compassionately.
These rules are currently open for public feedback until August 27, 2025, making this the right time for individuals and institutions to understand, adapt and prepare.
What’s Changing with new rule
The new directions proposed by RBI overhaul a previously inconsistent and frustrating system. Instead of arbitrary deadlines and varying requirements, customers now get a uniform, transparent set of rules , designed to be easy to understand and easier to enforce.
Here are the most important changes every customer, heir and banker needs to know:
Standardized Forms & Clear Document List
- All banks will now follow a common claim form format that applies across savings accounts, lockers and items held in safe custody, as directed by the RBI.
- A public checklist of required documents must be displayed both at bank branches and online, leaving no room for surprises.
15-Day Settlement Deadline
- Banks are required to complete the settlement process within 15 days once all documents are submitted.
- This deadline applies to:
- Bank deposit accounts
- Locker contents
- Items held in safe custody
- For lockers and safekeeping items, banks must notify the claimant to schedule an inventory date within this timeframe.
Compensation for Delays: Banks Pay for Inaction
- For deposit claims, banks must pay interest at the bank rate + 4% p.a. for the delay period.
Example: If the bank rate is 5.75%, compensation becomes 9.75% p.a.
- For locker/safe custody claims: A fixed ₹5,000 per day penalty will apply for each day of delay.
- This is compensation paid directly to the claimant, not a regulatory penalty.
Different Scenarios & Required Documents
Whether there’s a nominee or not, here’s exactly what families need to know to make a claim hassle-free.
RBI’s draft rules clearly outline who can claim, what documents are required and how the process differs depending on the nomination status and the value of the claim. This clarity is a big relief for families navigating sensitive situations.
If There Is a Nominee (Any Amount)
Quickest and simplest route to claim settlement.
- Required documents:
- Claim form
- Death certificate
- ID and address proof of nominee
- No legal heir certificate, indemnity bond or succession certificate is required.
- The nominee is treated as a trustee , not the legal owner , ensuring faster processing without affecting inheritance rights.
If There Is No Nominee: Claim Amount Up to ₹15 Lakh
Simplified process to ease hardship for most families.
- Required documents:
- Claim form
- Death certificate
- Indemnity bond (no sureties needed)
- No third-party sureties or court-issued certificates are required.
- Designed to help legal heirs settle smaller claims without unnecessary delays or complications.
If There Is No Nominee: Claim Amount Above ₹15 Lakh
Stricter checks for high-value claims to ensure legal integrity.
- Banks may ask for any of the following:
- Succession certificate
- Legal heir certificate
- Affidavit sworn before a magistrate or judicial authority
- This helps reduce legal disputes in large-value settlements while preserving rightful ownership.
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How This Helps Families & Customers
Clear rules, faster processing and real accountability , this draft is designed with people, not paperwork, in mind.
The RBI’s proposed rules bring meaningful, practical improvements to the way banks handle the sensitive task of settling claims for deceased customers. Here’s how these changes directly benefit the people who need it most:
Faster, Predictable Outcomes
- Families will no longer wait weeks or months without updates.
- A fixed 15-day deadline means everyone knows what to expect and when.
Less Paperwork, Less Stress
- Only essential documents are required.
- Clear lists mean no repeated visits to collect new paperwork.
- No nominee? Still simplified for claims up to ₹15 lakh.
Compensation Rights if Banks Delay
- Banks now have real consequences for not acting on time.
- Claimants are legally entitled to receive interest or daily compensation for delays.
- No more feeling powerless against big institutions.
Stronger Case for Keeping Nominations Updated
- Appointing a nominee helps avoid legal obstacles during the claim process.
- The RBI’s draft guidelines encourage banks to raise awareness among customers about why keeping nominations updated for accounts and lockers is crucial.
Timeline & What Residents Should Know Now
With the RBI’s draft circular already published and open for public input, both customers and banks have a short window to understand the changes and get ready.
Key Dates to Remember
- Public Feedback Deadline: August 27, 2025
- RBI is accepting comments from the public, banks, legal experts and financial stakeholders.
- RBI is accepting comments from the public, banks, legal experts and financial stakeholders.
- Expected Implementation Date: January 1, 2026
- After feedback is reviewed, final directions will be issued and banks must comply from the start of the new year.
What You Should Do Now
Whether you’re a customer, nominee or legal heir, here’s how you can prepare:
- Check your bank accounts and lockers for nomination details.
- Update nominee information where it’s missing or outdated.
- Keep key documents (death certificate, ID proof, etc.) safe and ready in case a claim needs to be made.
- Follow your bank’s website or RBI announcements for updates on the finalized rules.
Conclusion
The RBI’s 2025 draft rules represent more than just policy change; they reflect a cultural shift in Indian banking. By enforcing standardization, setting time-bound expectations and introducing direct accountability, the Reserve Bank is addressing a long-standing pain point with empathy and clarity.
For customers, it’s a sign that the system is becoming more people-first, more transparent and more responsive. For banks, it’s an urgent call to digitize, simplify and serve better.
As India moves toward more inclusive and accountable financial services, these rules could become a benchmark for how institutions balance regulation with humanity. And for millions of families, that’s a change worth celebrating.
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