RBI Issues New Directions on Settlement of Claims for Deceased Customers

RBI has introduced new directions through notification dated September 24, 2025 related to the settlements of claims for deceased bank customers. These “Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025” aims to regulate and simplify the process for handling claims related to accounts, lockers, and articles in safe custody.

I. Introduction

The nomination facility in bank accounts, lockers, and safe custody is meant to help banks quickly settle claims after a customer’s death, reducing difficulties for the family. If no nomination is registered, banks currently follow a simplified process to settle claims up to a certain limit. However, different banks are using different methods. To fix this, the rules are being reviewed, and new regulations will be issued to make the process uniform, improve documentation, and provide better customer service.

II. Preliminary

A. Preamble

Such Directions are introduced to give a harmonised framework and to standardise the documentation for settlement of claims in respect of deposit accounts, safe deposit lockers and articles in safe custody to minimise the difficulties faced by the nominees, survivors and legal heirs.

B. Power Exercised

In powers given by Sections 35A, 45C (3) and 45ZE (4) of the Banking Regulation Act, 1949 read with Section 56 of the Act ibid, the Reserve Bank of India approved that it is necessary and expedient in the public interest to do so and issues the mentioned Directions.

C. Short Title

Such directions will be known as the Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025.

D. Effective Date

These instructions will be carried out with all due speed and, in any case, no later than March 31, 2026.

E. Applicability

• Such directions will apply to all commercial banks and co-operative banks.
• These directions do not cover Government savings schemes like SCSS, PPF, and others managed by banks. Claims in such cases will follow the rules of the respective schemes.

For complete information refer the notification-