A loss in the family often leaves relatives struggling with formalities while dealing with grief. One of the most difficult tasks is gaining access to the bank accounts or lockers of the deceased. On August 6, 2025, the Reserve Bank of India released its latest draft guidelines, aiming to change this struggle into a quicker, standard process for faster claim settlement on accounts and faster claim settlement on lockers.

The central bank, in its Draft Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025, has proposed that all banks must complete claim settlement on accounts within 15 calendar days after receiving the necessary papers. The draft has been opened for public comments till August 27, 2025, with the new rules expected to take effect on January 1, 2026.

This change follows repeated complaints about long delays, inconsistent paperwork demands, and poor coordination across branches. Now, the regulator is looking to make the system uniform across the country with new rules on claim settlement by RBI.

15-Day Timeline for Faster Claim Settlement on Accounts

One of the most important changes is the introduction of standard forms for all banks. These will ensure that a customer’s nominee or legal heir faces the same requirements regardless of the bank or branch involved, whether for claim settlement on lockers of deceased customers or for accounts.

The proposed rules also introduce clear penalties for delays. For deposit accounts, any late claim settlement on accounts will require banks to pay interest at the Bank Rate plus 4 percent per year. In the case of safe deposit lockers or safe custody articles, a delay in claim settlement on lockers will result in a daily compensation of 5,000 rupees.

Below is a summary of the claim process as proposed in the draft:

Scenario	Required Documents	Settlement Time	Penalty for Delay
With a nomination or survivorship clause	Claim form, death certificate, proof of claimant identity	15 days	Interest at Bank Rate + 4% p.a.
Without nomination (value ≤ ₹15 lakh)	Indemnity bond, no-objection letters, legal heir certificate or self-declaration	15 days	Same as above
Without nomination (value > ₹15 lakh)	Succession certificate, affidavit, surety	15 days	Same as above

These steps aim to cut confusion, particularly in cases without a nomination, where banks often follow different standards for claim settlement.

Standard Forms to Simplify Claim Settlement on Lockers and Bank Accounts

For lockers and safe custody items, the draft rules require banks to set a date for inventory within 15 days of receiving the documents. This process will involve the claimant, two independent witnesses, and bank officials.

The RBI has stressed that the nominee or joint account holder will receive the contents as a trustee of the legal heirs, not as the outright owner. This clarification addresses disputes where nominees assumed sole ownership after claim settlement on lockers of deceased customers.

Item Type	Procedure	Compensation for Delay	Oversight Required
Safe deposit locker	Inventory in the presence of claimant, witnesses, and bank staff	₹5,000 per day	Bank officer and 2 witnesses
Safe custody article	Same as above	₹5,000 per day	Same as above
Joint locker	Access to survivor(s) with record of inventory	₹5,000 per day	Same as above

By setting clear steps, the central bank expects to reduce arguments between families and banks over who gets access and how, ensuring faster claim settlement on accounts and faster claim settlement on lockers.

Why is the RBI Changing Rules for Faster Claim Settlement?

According to the RBI’s statement in the draft report, the banking regulator received frequent complaints about settlement delays, some stretching for months. Many banks were found asking for excessive or non-essential documents. The new norms are aimed at removing such hurdles.

The proposed system will also bring transparency for families in distress, giving them clear deadlines and the right to compensation for any delay.

Problem Reported	Old Practice	New Proposal	Expected Impact
Delay beyond 30 days	No fixed penalty	Fixed daily or interest penalty	Faster settlement
Different document lists for the same case	Bank-specific lists	Uniform national list	Less confusion
Nominee rights unclear	Different interpretations	Nominee as trustee only	Fewer disputes

This approach not only speeds up settlements but also ensures that nominees cannot bypass rightful heirs.

Transition Plan for New Rules on Claim Settlement by RBI

Banks will have until the end of 2025 to adjust their internal systems and train staff. The RBI has invited public comments until August 27, 2025, to address any gaps before finalising the directions. The goal is to have a smooth rollout on January 1, 2026.

This feedback period also offers consumer groups and legal experts a chance to suggest improvements. It marks a rare opportunity for the public to influence a core banking process that affects millions of households.

Timeline Stage	Key Action	Stakeholders
August 27, 2025	End of feedback period	Public, banks, legal experts
Late 2025	Banks prepare for rule changes	Banks, RBI
January 1, 2026	Implementation of new rules	All banks, customers

By placing the feedback phase before the compliance deadline, the regulator is aiming for an orderly changeover instead of a rushed enforcement.

Conclusion

If adopted in full, these norms will set a national standard for faster claim settlement on accounts and faster claim settlement on lockers of deceased customers. Families will have predictable timelines, banks will have no room to stretch procedures, and disputes over nominee rights will be addressed more clearly.

This reform, though administrative, has a deeply human angle. It aims to remove at least one burden at a time when families are already dealing with loss.

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