Losing a family member is hard enough without the added stress of dealing with bank formalities to access their savings, fixed deposits, lockers or safe custody items. In the past, families often ran into inconsistent rules across different banks, excessive paperwork and long waits that made an already difficult time even worse. The Reserve Bank of India (RBI) has stepped in with clear, standardised directions to make this process smoother and fairer for everyone involved. You can find the full official directions on the RBI website at this notification page.
These guidelines create a uniform approach that all commercial and cooperative banks must follow. They focus on quick settlements, minimal documentation where possible and accountability if banks drag their feet. The goal is simple: help nominees or legal heirs get what they are entitled to without unnecessary hurdles, while still protecting banks from fraudulent claims.
How Claims Work When There Is a Nomination or Survivorship Clause
If the deceased account holder added a nominee or opened the account jointly with a survivorship option (like “Either or Survivor” or “Former or Survivor”):
- The bank must release the funds or grant locker access directly to the nominee or surviving holder.
- You only need a few basic documents: a standardised claim form, the death certificate and proof of your identity.
- Banks cannot ask for a succession certificate, probate of a will, letter of administration, indemnity bond or surety, no matter how large the amount.
- Once paid to the nominee or survivor, the bank’s responsibility ends. However, the nominee holds the money as a trustee and should distribute it fairly among legal heirs if required under succession laws.
This setup removes many old roadblocks and lets families access funds quickly when they need them most.
No nomination in the deceased's account and claim above ₹15 lakh? You'll likely need a Succession Certificate to settle smoothly. Get expert help to apply anywhere in India without hassle.
Claims Without Nomination: A Graded Approach
When no nominee or survivorship clause exists, the process depends on the total claim amount:
| Bank Type | Threshold for Simplified Settlement | Key Requirements for Simplified Cases |
| Commercial Banks | Up to ₹15 lakh | Claim form, death certificate, your ID proof, indemnity bond, proof of legal heirship (like a family declaration or certificate) and no-objection from other heirs if needed. No third-party surety required. |
| Cooperative Banks | Up to ₹5 lakh | Same as above. |
For amounts above these limits, banks can request extra safeguards, such as a succession certificate or surety.
People Also Read: What is Testamentary Succession under the Indian Succession Act
Special Provisions for Certain Scenarios
- Premature Termination of Term Deposits: No penalty on death; full contractual interest paid. For joint term deposits, survivors can withdraw prematurely without legal heirs’ consent if a prior mandate exists.
- Missing Persons: Settle like deceased claims with court order; for amounts under ₹1 lakh (or higher bank limit), accept FIR and police non-traceable report instead.
- Death Abroad: Accept death certificates certified by overseas bank branches, notaries, consulates or apostilled.
- Post-Settlement Credits: Return any later credits to remitter with “Account holder deceased” note and inform nominee/heirs.
- Sole Proprietorship Accounts: Nomination applies; follow standard procedures.
Handling Safe Deposit Lockers and Safe Custody Items
- With nomination or survivorship: Access is granted after basic checks. The bank prepares an inventory of contents in front of the nominee, independent witnesses and bank staff.
- Without nomination: Follow the same graded process as deposits. An inventory is always required for transparency.
Special cases, like missing persons (claims under ₹1 lakh can use FIR and police report instead of court order) or deaths abroad (attested death certificates accepted), have tailored provisions.
Disputes among heirs or bank demanding legal representation? A Succession Certificate resolves ownership quickly and avoids prolonged hold-ups. Our lawyers handle the entire process online for any state in India
Strict Timelines and Compensation for Delays
Banks now face clear deadlines to prevent endless waiting:
| Claim Type | Deadline After Receiving All Documents | Compensation if Bank Causes Delay |
| Deposit Accounts | 15 calendar days | Interest at prevailing Bank Rate + 4% per annum on the due amount |
| Lockers or Safe Custody | Process and schedule inventory within 15 days | ₹5,000 per day |
If a delay happens due to the bank, they must explain it and pay the penalty automatically.
People Also Read: What are the Challenges to Succession Certificates
Required Documents Overview
| Scenario | Main Documents Needed |
| With Nomination/Survivorship | Claim form, death certificate, claimant ID proof |
| Without Nomination (Simplified) | Above plus indemnity bond, heir proof, no-objection if applicable |
| Involving Uncontested Will | Will plus probate or letters of administration (banks may accept genuine wills without probate in low-risk cases) |
| Disputed or Court-Ordered | Relevant court order (probate, succession certificate, etc.) |
Banks must provide standardised forms at branches and online.
Real-World Outcomes: Insights from Consumer Forum Cases
Consumer forums have long highlighted problems these guidelines address. Here are some key examples that show how things are improving:
- In cases where banks wrongly demanded succession certificates despite valid nominations, forums directed immediate release, plus compensation for harassment (often ₹10,000 to ₹50,000) and costs.
- Delays beyond reasonable periods led to awards for mental agony, with banks ordered to pay interest penalties similar to the new rules.
- A common ruling clarified that nominees act as trustees, protecting heirs’ rights while allowing quick bank discharge.
- For counterfeit or disputed items in lockers, forums emphasised inventory transparency to avoid future conflicts.
- Recent complaints about unnecessary surety for mid-range claims resulted in banks being penalised, reinforcing the need for thresholds.
These decisions paved the way for the current framework, ensuring banks face consequences for non-compliance.
Practical Tips for a Hassle-Free Process
Handling these claims yourself is straightforward in most cases. Here’s how to make it smoother:
- Register nominations early for all accounts and lockers; it’s the best way to avoid complications.
- Keep account details, nomination records and death certificates organised.
- Submit claims at any branch or online where available.
- Gather evidence like photos of documents upfront.
- Track progress and politely remind banks of timelines.
- If issues arise, escalate to the bank’s grievance officer or RBI’s integrated ombudsman (RBI’s Complaint Management System portal).
DIY works well for standard cases, keeping things quick and cost-free.
People Also Read: What are the Succession Certificate Petition Forma
Recent Court Rulings Highlighting Key Issues in Deceased Bank Claims
Consumer forums and courts frequently address disputes over nomination, document demands, and delays. Here are some notable examples that show how the system protects families:
- Central Bank of India v. Naresh Kumar Jain (Madras High Court, 2024): The deceased had named his wife as nominee in fixed deposits. After his death, the bank demanded a succession certificate despite clear nomination. The court ruled this unnecessary under banking laws, ordering immediate release to the nominee plus ₹25,000 compensation for mental harassment and litigation costs. Lesson for readers: Nomination should mean quick access with basic documents only, extra demands like succession certificates can be challenged successfully.
- State Bank of India v. Complainant Widow (NCDRC, 2025): A widow (nominee) faced months of delays in releasing joint account funds. The National Consumer Disputes Redressal Commission (NCDRC) found the bank deficient in service, directing payment with penal interest and ₹50,000 for agony caused during bereavement. Lesson: Banks must meet timelines; delays attract automatic interest and extra awards, reinforcing RBI’s compensation rules.
- Multiple District Forum Cases (Various, 2024–2025): In several complaints (e.g., against public sector banks), nominees were asked for indemnity bonds or sureties despite nomination. Forums consistently ordered releases using only claim form, death certificate, and ID, plus ₹10,000–₹30,000 compensation. Lesson: Courts view nominees as trustees but protect them from hurdles, making nomination the safest option.
- J&K High Court Ruling on Survivorship (December 2025): In a joint account dispute, the court confirmed payment to the survivor fully discharges the bank, even if other heirs later claim shares. Lesson: Survivorship clauses work like strong nominations, shielding banks and speeding access.
These rulings encourage banks to follow nomination strictly and highlight why avoiding succession certificates (through nomination) saves time and stress.
Without a nomination, legal heirs often need a Succession Certificate for bank claims. Avoid future stress for your family — get professional guidance to obtain it efficiently across India.
Why These Guidelines Matter
They bring consistency, speed and empathy to a sensitive area. Families get faster access to funds during tough times and banks have clear rules to follow. Awareness campaigns are also mandated to encourage more nominations.
When You Might Need Extra Help
If documentation feels overwhelming or disputes crop up, professionals at ezyLegal can review your case, draft notices or guide you through the process.
Wrapping Up
These RBI directions make settling deceased claims far less burdensome. With nomination, it’s often just a few forms away from resolution. Even without, simplified options cover most everyday amounts. Stay prepared by adding nominees where possible and know your rights to timelines and compensation.
Frequently Asked Questions: RBI Guidelines on Settlement of Cliams for Deceased Bank Customers
Q1. Does the nominee become the full owner of the deceased’s bank funds?
Ans1. No, the nominee receives the money as a trustee and should share it according to succession laws among legal heirs.
Q2. Can banks demand a succession certificate if a nominee exists?
Ans2. No, that’s prohibited; only basic documents are needed.
Q3. How soon must banks settle a deposit claim?
Ans3. Within 15 days of getting all documents.
Q4. What happens if the bank delays?
Ans4. They pay compensation: interest for deposits or a daily amount for lockers.
Q5. For no-nomination cases above ₹15 lakh, what extra is needed?
Ans5. Often a succession certificate or surety, depending on the bank.
Q6. Can I submit claims digitally?
Ans6. Yes, banks must support online submission and tracking.
Q7. Do cooperative banks follow the same rules?
Ans7. Yes, but with a lower simplified threshold of ₹5 lakh.
Q8. What about premature withdrawal penalties on fixed deposits after death?
Ans8. None; full interest is paid without charges.
Q9. How is locker access handled for nominees?
Ans9. Granted after verification, with a witnessed inventory.
Q10. Are foreign death certificates acceptable?
Ans10. Yes, if properly attested or apostilled.
Q11. What if heirs dispute the claim?
Ans11. Banks wait for a court order before releasing anything.
Q12. Must banks promote nominations?
Ans12. Yes, through ongoing awareness efforts.
Q13. Can nominations be added later?
Ans13. Absolutely, anytime with a simple form.
Q14. What for joint accounts without survivorship?
Ans14. Treated like no-nomination cases; heirs claim with survivor input.
Q15. Is indemnity required with nomination?
Ans15. No, not allowed.
Q16. How to handle missing person claims under ₹1 lakh?
Ans16. Use FIR and police non-traceable report.
Q17. Do heirs have to go through the nominee?
Ans17. Yes, banks pay nominees; heirs settle with them later.
Q18. Does this cover sole proprietorship accounts?
Ans18. Yes, nominations are now extended.
Q19. Can claims be filed anywhere?
Ans19. Yes, at any branch of the bank.
Q20. What if a will exists but no one contests it?
Ans20. Banks may settle based on the will’s genuineness, sometimes without probate.
contact@ezylegal.in
+91-85 8888 7480