The Reserve Bank of India (RBI) has set a 15-day timeframe for the settlement of claims on deceased customers’ bank accounts and lockers, failing which the nominees will be paid prescribed compensation for delays.

The regulator, issuing revised norms, has also simplified the process for settlement claims made by the nominees for bank deposits up to Rs 15 lakh. In case of co-operative banks, the limit has been set at Rs 5 lakh.

The RBI’s revised rules have standardised procedures across banks for settlement of claims relating to deposits, safe deposit lockers and articles in safe custody of deceased customers. The norms have introduced uniform documentation, thresholds and timelines to bring improvement in the quality of customer service.

The new directions, named the 'Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025', will have to be implemented by the end of 31 March 2026.

For accounts without a nominee/survivorship clause, banks have been asked to adopt a simplified procedure for settlement of claims in cases where the aggregate amount payable is less than the threshold limit.

Threshold limit means Rs 5 lakh in case of a co-operative bank and Rs 15 lakh in case of any other bank or such higher limit as may be fixed by the bank, including a co-operative bank.

In cases where the amount is above the threshold limit, the bank may ask for additional documents like a succession certificate or a legal heir certificate.

The RBI's latest directions also prescribe norms for the settlement of claims not falling under the simplified procedure.

On the time limit for settlement of claims, the RBI said a bank shall settle a claim in respect of deposit accounts of a deceased customer within a period not exceeding 15 calendar days from the date of receipt of all the required documents associated with the claim.

"In case of safe deposit locker/ articles in safe custody, the bank shall, within 15 calendar days of receipt of all the required documents, process the claim and communicate with the claimant(s) for fixing the date for making inventory of the locker/articles in safe custody," the central bank said.

If any deposit-related claim is not settled within the timeframe stipulated, the RBI said, then the bank will communicate the reasons for such delay to the claimant(s).

"Further, in cases of delay attributable to the bank, compensation shall be paid by the bank in the form of interest, at a rate not less than the prevailing Bank Rate + 4 per cent per annum, on the settlement amount due for the period of delay," it said.

For claims related to safe deposit locker/ articles in safe custody, the bank will be required to pay compensation to the claimant(s) at the rate of Rs 5,000 for each day of delay, in cases where it doesn't adhere to the timeline.