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Circular No. – RBI/2025-26/82 DoR.MCS.REC.50/01.01.003/2025-26; Dated: 26.09.2025

1. RBI Issues Revised Directions on Settlement of Claims

The Reserve Bank of India (RBI) has released revised directions for the settlement of claims relating to deceased customers of banks. These new norms have been framed to eliminate divergent practices followed by banks and to bring about uniformity in the process. The focus is on simplifying claim settlement, improving customer service, and standardising documentation across deposit accounts, safe deposit lockers, and articles kept in safe custody. The guidelines will be applicable to all commercial and cooperative banks.

2. Valid Discharge of Bank’s Liability in Nominated Accounts

As per the revised norms, in a deposit account with a registered nomination or an account opened under a survivorship clause, the payment of the outstanding balance to the nominee or survivor will be treated as a valid discharge of the bank’s liability. This provision provides clarity and ensures faster claim settlement without unnecessary procedural hurdles.

3. Simplified Procedure for Non-Nominated Accounts

For accounts without a nomination or survivorship clause, banks have been advised to adopt a simplified settlement process. This will apply in cases where the aggregate amount payable is below a threshold limit. The RBI has defined the threshold as ₹5 lakh in the case of cooperative banks and ₹15 lakh for other banks, though banks are free to adopt a higher limit, including for cooperative banks, if they wish. This measure is intended to reduce delays and procedural complexities for small-value claims.

4. Standardised Documentation and Forms

To ensure consistency across institutions, the RBI has directed banks to use standardised forms and documents for accepting claims. These prescribed formats will apply to settlements relating to deposit accounts, safe deposit lockers, and articles held in safe custody of deceased customers. Importantly, these forms must be readily available at all bank branches and also uploaded on the banks’ official websites, ensuring easy accessibility for claimants.

5. Mandatory Disclosure on Bank Websites

In order to promote transparency and reduce customer inconvenience, the RBI has also mandated that banks must clearly display on their websites:

(a) All documents required to be submitted by claimants.
(b) The detailed procedure to be followed for the settlement of claims.

This measure ensures that claimants are fully aware of the required process and can prepare the necessary documents in advance, thereby reducing delays and disputes.

6. Conclusion

The RBI’s revised norms represent a major step toward customer-centric banking practices. By simplifying claim settlement procedures, standardising documentation, and ensuring transparency, these directions are expected to streamline banking operations and improve service quality for the families of deceased customers.

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