Latest RBI Circular Dated 26.09.2025
Reserve Bank of India vide its Circular bearing No. RBI/2025-26/82 DoR.MCS.REC.50/01.01.003/2025-26(Settlement of Claims in respect Deceased Customers of Banks) Directions, 2025 has reviewed and issued revised Regulations to streamline the procedures and standardise the documentation to facilitate expeditious settlement of claims by banks upon death of a customer and to minimise hardship to family members.
The circular applies to all commercial and co-operative banks in respect of deposit accounts, safe deposit locker and articles in safe custody for deceased customer; but not applicable to Government Savings Schemes opened in Banks like Senior Citizen Savings Scheme (SCSS) , Public Provident Fund ( PPF).
To simply the settlement, RBI has fixed a threshold limit i.e. Rs. 5 lakhs for co-operative Bank and Rs. 15 lakhs for other banks claims and to minimise the difficulties faced by nominees, survivors and legal heirs.
The Circular covers various situations and important aspects are mentioned hereunder :
A. Settlement of Claims in Deposit Accounts of deceased Depositor
- Accounts with nominee(s)/survivorship clause;
Banks will not insist on production of legal documents such as Succession certificate, Letters of Administration, Probate of Will etc., and/or not seek any bond of indemnity/surety.
Documents required will be Claim Form (Annex I-A),Death Certificate, Identification and Address Proof of nominee - Accounts without nominee/survivorship clause but within threshold limit and having no contesting claims Documents required will be Claim Form (Annex I-B) , Death Certificate, Identification and Address Proof of Nominee ,Bond of Indemnity, No objection from other legal heirs, Legal heirship certificate.
- Claim amount above the threshold limit; Documents required will be Succession Certificate or Legal Heirship Certificate, Affidavit by an independent person well known to the family of deceased in the requisite format.
- Claims involving Will without any dispute;Documents required will be Probate of Will/ Letters of Administration. Banks are free to exercise discretion to act as per “ Will ”, if Bank is satisfied about genuineness of Will and provided Will is not inconsistent with applicable laws and there is no dispute regarding the Will amongst legal heirs/beneficiaries.
B. Claims in Safe deposit locker and Articles in safe custody of deceased Customer:
- Claims with Nominee(s)/Survivors(s): Banks shall give access to the locker to such nominee(s) with liberty to remove contents of the locker. If locker was hired jointly, then the Bank shall give access of the locker and the liberty to remove the contents jointly to the nominee(s) and the survivors(s). Bank shall follow the mandate in the event of death of one or more of the joint locker hirers as recorded in the bank records. Banks have been asked to ensure that it is made clear that access and liberty to remove the contents from the locker is given to them only as a trustee of the legal heir and shall not affect the right or claim which any person may have against the nominee(s)/ survivors(s) to whom the access is given.
- Cases without Nominee/Survivorship clause: Banks have been mandated to follow a simplified procedure for settlement of claims in safe deposit lockers provided there is no dispute. Documents required will be Succession Certificate, Letters of Administration, Probate of Will, etc. Bond of Indemnity from the nominee(s)/survivor(s) in case of dispute or any discrepancy in nomination.
In all other cases, the procedures as mentioned in the settlement of claims pertaining to the deposit account will be applicable to the claims regarding the safe deposit locker.