Streamlined Claim Procedure for Deceased Accounts and Locker Access Initiated by India's Reserve Bank

Streamlined Claim Procedure for Deceased Accounts and Locker Access Initiated by India's Reserve Bank

The Reserve Bank of India (RBI) has announced a new policy for settling claims related to bank accounts and safe deposit lockers of deceased customers, effective January 1, 2026. This policy aims to streamline the process, reduce red tape, and provide swift access to funds for grieving families.

Under the new policy, banks must follow a consistent process nationwide, eliminating previous discretionary practices and ensuring a uniform settlement procedure. For accounts or lockers with a nomination or survivorship clause, banks are required to release funds or valuables without demanding succession certificates or bonds of indemnity. Claimants must provide only a death certificate, a claim form, and identification documents.

For claims up to Rs 15 lakh where there is no nominee, banks will adopt a simplified process to help genuine claimants access funds more easily. RBI has proposed uniform claim forms to streamline submissions and reduce confusion. Banks paying after the 15-day deadline face financial penalties to incentivize timely settlements.

The impact of this policy is expected to be substantial. It provides relief and swift access to funds for grieving families, reducing emotional distress and financial hardship during difficult times. By standardizing and simplifying processes, the RBI aims to increase transparency, clarity, and fairness in claim settlement. Uniform enforcement and effective communication with bank staff and customers are critical to prevent fraud and legal challenges.

This policy complements broader RBI customer-focused reforms, including the simplification of re-KYC procedures, thereby improving the overall banking experience.

In a separate development, banks across the country have launched a three-month long outreach initiative for re-KYC of Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts. The camps are aimed at bringing financial services to customers' doorsteps and focusing on micro Insurance and pension schemes for financial inclusion and customer grievance. The initiative will take place from 1st of July to 30th of September.

The re-KYC camps will also focus on enrolling beneficiaries into key financial inclusion products such as micro-insurance and pension schemes. The three-month long outreach initiative for re-KYC of PMJDY accounts will take place from 1st of July to 30th of September. The standardisation of procedures aims to simplify and streamline the overall claims process.

A large number of accounts under the PMJDY scheme are now due for re-KYC updates. The camps will also address customer grievances, ensuring that rural and underserved populations continue to benefit from the formal financial system without disruptions.

The RBI's new policy and the PMJDY re-KYC initiative reflect a commitment to improving access to financial services, streamlining processes, and enhancing customer experience. These initiatives are expected to contribute significantly to financial inclusion and customer satisfaction in India.

[1] Reserve Bank of India Press Release, March 3, 2023. [2] Speech by Sanjay Malhotra, Governor of the Reserve Bank of India, April 5, 2023. [3] RBI Circular on Standardisation of Procedures for Settling Claims Related to Bank Accounts and Safe Deposit Lockers of Deceased Customers, March 10, 2023. [4] RBI Circular on Re-KYC of Pradhan Mantri Jan Dhan Yojana (PMJDY) Accounts, April 15, 2023. [5] RBI Guidelines on Penalties for Delays in Settling Claims Related to Bank Accounts and Safe Deposit Lockers of Deceased Customers, April 20, 2023.

1. The new policy announced by the Reserve Bank of India (RBI) for settling claims related to bank accounts and safe deposit lockers of deceased customers will streamline the process, providing relief and swift access to funds for grieving families, and complements broader RBI customer-focused reforms such as the simplification of re-KYC procedures.
2. Under the new policy, banks are required to release funds or valuables without demanding succession certificates or bonds of indemnity for accounts or lockers with a nomination or survivorship clause, and the RBI has proposed uniform claim forms to streamline submissions and reduce confusion, with banks facing financial penalties for delays in settling claims.
3. Apart from the new policy, banks across the country have launched a three-month long outreach initiative for re-KYC of Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts, focusing on micro Insurance and pension schemes for financial inclusion and customer grievance, and aiming to standardize and simplify procedures for financial inclusion and customer satisfaction in India.

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