In a significant move to improve customer service, the Reserve Bank of India has released a draft circular titled “Settlement of Claims in respect of Deceased Customers of Banks, 2025”, proposing streamlined procedures for all banks, especially cooperative banks. The draft aims to remove procedural hurdles that often delay claim settlements and burden bereaved families.
Under the proposed norms, claims involving nominees or survivorship clauses can be settled without succession certificates, Wills, or indemnity bonds, provided proper identity and death verification is in place and no legal dispute exists. In the absence of a nominee, claims up to Rs 15 lakh can be processed with minimal documentation and without third-party surety.
The draft is a major relief for cooperative banks, particularly in rural areas, which often face administrative challenges in settling succession-related claims. These guidelines enable faster processing, reduced paperwork, and better customer confidence.
Additionally, banks must settle claims within 15 days of receiving all required documents. Delays will attract compensation, interest for deposit accounts and Rs 5,000 per day for locker claims. The RBI has also asked banks to raise awareness on the importance of nomination and make claim services accessible across branches and online. Feedback is invited until August 27, 2025.