RBI Simplifies Claim Rules for Deceased Accounts, Effective March 2026

The Reserve Bank of India has introduced new regulations to make banking more transparent and customer-friendly. From now, banks must settle claims related to deceased customers’ accounts and lockers within just 15 days. If banks delay the process, the nominee will also be eligible for additional compensation, ensuring faster relief to the family. These rules will officially come into effect from March 31, 2026.

Claim Settlement Rules Changed

According to the RBI, the new guidelines are designed to simplify claim settlements for deposit accounts, lockers, and custody items. If a customer had nominated someone, the bank will be required to release the full amount to the nominee, and this payment will be treated as a valid discharge of liability. This step will help remove unnecessary hurdles and make the process smoother for customers.

Time Limit Fixed at 15 Days

The most important part of the new framework is the mandatory settlement time. Banks must clear claims within 15 days of receiving the necessary documents. In case of delay, they will have to compensate the nominee separately. The aim is to ensure that families do not face financial problems due to late settlement.

Uniform Documentation Standard

RBI has also introduced standard documentation for all banks. With this change, the nominee will not need to submit multiple documents at different branches. The standardized paperwork will bring uniformity across banks and improve customer service quality. This will save both time and effort for the nominee.

Rule for Accounts Without Nominee

For accounts without a nominee, RBI has directed banks to follow a simplified process if the total amount payable is under a certain limit. For cooperative banks, this limit is fixed at ₹5 lakh, while for other banks, the limit is ₹15 lakh. Banks may also increase these limits at their discretion to provide further relaxation.

When Higher Amount Is Involved

If the claim amount exceeds the prescribed limit, banks may demand legal documents such as a Succession Certificate or Legal Heir Certificate. RBI clarified that this step is essential to avoid disputes in high-value accounts. However, the new rules ensure that small-value claims are processed without any legal complexities.

Compensation for Delay

One of the strongest points of the RBI’s directive is the compensation clause. If a bank fails to transfer the claim amount within the 15-day deadline, the nominee will get additional compensation. This ensures accountability and will encourage banks to work with speed and responsibility.

Major Relief for Public

These regulations are a big relief for customers and their families. Until now, settlement of deceased claims often took months or even years due to long documentation and verification procedures. With the new RBI rules, nominees can now expect faster payments and reduced legal hurdles, marking a significant reform in customer service.

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