Strict rules of RBI: Banks will have to deal with dead customers in 15 days, otherwise the penalty will have to be paid
Reserve Bank of India (RBI) Has taken special initiative to dispose of claims related to bank accounts and lockers of dead customers within 15 days. The central bank is planning to standardize the form to settle such cases within a fixed deadline and compensate the nominees for any delay. The RBI has proposed to bring standard procedures for the disposal of claims related to the bank accounts of dead bank customers and goods kept in safe deposits. Its purpose is to make the disposal more convenient and simple.
Asked comments till 27 August
In this direction, the central bank draft circular – the Reserve Bank of India (disposal of claims in relation to the dead customers of banks), 2025 ‘has issued 2025’ and sought comments on it till 27 August. The draft said, “Bank will use standardized forms to obtain claims and other documents.” It also provides for compensation for delay in disposal of claims. ” The draft states that if a person has been nominated for deposited accounts or lockers, he will have to submit a claim form, death certificate (deceased customer) and nominee (Namini) for the identity and verification of the address.
Emphasis on adopting simple procedure
According to the draft, the bank should adopt a simple procedure for the disposal of claims in the deposit accounts where the deceased depositor has not nominated, so that the claimant or legal heir can be saved from inconvenience. For disposal of such claims, the bank should set a minimum limit of Rs 15 lakh on the basis of its risk management systems. Currently, all banks have their own systems and procedures regarding claims related to account and locker by the deceased’s ‘nominee’ person. Similarly, there may be some variation in the processes of banks for accounts without ‘nominee’. This step will make the process standardized and simple. According to the current instructions, banks need to adopt a simplified procedure to facilitate early and hassle -free settlement of ‘nominee’ individuals/legal heirs.
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