Applicability
- Applies to all commercial banks and co-operative banks.
- Not applicable to Government savings schemes (e.g., PPF, SCSS).
- Effective by March 31, 2026.
Key Provisions
1. Deposit Accounts
- With nominee / survivorship clause:
- Payment to nominee/survivor is valid discharge of bank’s liability.
- Only claim form, death certificate, and nominee’s ID required.
- No need for Succession Certificate/Probate/Indemnity.
- Without nominee / survivorship clause:
- Up to threshold (₹15 lakh for banks, ₹5 lakh for co-ops): Simplified procedure using claim form, death certificate, ID, indemnity bond, no-objection/disclaimer from other heirs, and legal heir certificate/affidavit.
- OR : Declaration, as given in Annex I-E, regarding the legal heir(s) of the deceased depositor(s) by an independent person who is well known to the family of the deceased, is not a party to the claim and is acceptable to the bank. No bond of surety from a third-party shall be obtained in case of claims up to the threshold limit.
- Above threshold: Legal documents like Succession Certificate / Legal Heir Certificate / Affidavit + surety may be required.
- OR: Legal Heir Certificate issued by a competent authority;
- OR: Affidavit, as given in Annex I-E, sworn before a Notary Public/ Judge/ Judicial Magistrate regarding the legal heir(s) of the deceased depositor, by an independent person who is well known to the family of the deceased, is not a party to the claim and is acceptable to the bank.In such cases, the bank shall call for the documents at clauses 10(a)(i) to (v) above. The bank may also call for a bond of surety, as given in Annex I-C, from third-party individuals (which may include non-claimant legal heir(s)) who are acceptable to the bank and good for the claim amount
- Special cases:
- With Will (no dispute): Settlement based on Will + basic documents.
- Disputes / multiple claims: Settlement only after Court order / Probate.
- Premature closure of FDs: Allowed without penalty after death.
- Missing persons: Court order needed, except for claims <₹1 lakh (FIR + non-traceable report accepted).
2. Safe Deposit Lockers / Articles in Custody
- With nominee / survivorship clause:
- Access and removal of contents allowed to nominee/survivor (as trustee of heirs).
- Inventory prepared in presence of witnesses, custodian, and bank staff.
- No Succession Certificate/Probate required unless discrepancies.
- Without nominee / survivorship clause:
- Simplified procedure for undisputed cases (claim form, death certificate, ID, heir certificate/affidavit, no-objection).
- For disputed/Will cases: Probate or Court order required.
- Contents inventoried and valued before release.
3. Operational Guidelines
- Standard forms (Annex I-A to I-H) prescribed for uniformity.
- Forms and procedure must be available on bank websites and branches.
- Claims can be filed at any branch or online with tracking facility.
4. Timelines & Compensation
- Claims to be settled within 15 days of receiving all required documents.
- Delay in deposit claims → interest at Bank Rate + 4% p.a.
- Delay in locker/article claims → ₹5,000 per day compensation.
5. Other Provisions
- Proprietorship accounts: Nomination facility applicable.
- Overseas deaths: Foreign death certificates accepted if certified (by embassy, apostille, bank official, etc.).
- Awareness: Banks must publicize nomination/survivorship benefits.
- Repeal: Previous RBI circulars on deceased claims stand repealed.