Settlement of Claims in respect of Deceased Customers
Overview
The Reserve Bank of India vide its circular No. DoR.MCS.REC.50/01.01.003/2025-26 dated 26th Sep 2025 had issued detailed regulations on deceased claim settlement procedures and standardise the documentation to bring improvement in the quality of customer service.
The nomination facility in deposit accounts, safe deposit lockers under the provisions of Sections 45ZA to ZF of the Banking Regulation Act, 1949 read with Section 56 of the Act ibid is intended to facilitate expeditious settlement of claims by banks upon death of a deceased customer and to minimise hardship caused to the family members.
To streamline the procedures and standardise the documentation in the settlement of the deceased claims, revised guidelines are being issued by RBI to bring improvement in the quality of customer service.
Benefits of the revised Guidelines: –
- Simplified claim settlement procedure for certain thresholds in deposit accounts
- Standardized documentation and Annexures
- Simplified claim settlement procedure of Safe Deposit Locker
- Introduction of 15 calendar days TAT for settlement of such claims.
- Compensation in form of interest to the claimant for delay in settlement.
Further, in cases where nomination is not registered, the extant instructions were issued to banks to adopt a simplified procedure for settlement of the claims up to a threshold limit and revised regulations are issued to streamline the procedures and standardize the documentation to bring improvement in the quality of customer service in regard to the settlement of the deceased claims.
The new framework is designed to make the process quicker and simpler for nominees and legal heirs by setting clear timelines and reducing the burden of documentation.
Advantages of Nomination facility / Survivorship mandate
Nomination facility
- Nomination Facility – an ideal tool to mitigate hardships of common persons in settlement of claims in the event of death of the account holder.
- Nomination facility simplifies the procedure for settlement of claims of deceased depositors as banks get a valid discharge by making payment of the balance outstanding in a depositor’s account at the time of his death or delivering contents of locker to the nominee.
- The nominee can access funds promptly which ensures the financial security, providing essential financial support to the family during difficult times and helping to cover immediate expenses.
- A clear nomination prevents potential conflicts and confusion among legal heirs by clearly stating the account holder’s wishes.
Survivorship
- A joint account opened as “Either or Survivor” or “Anyone or Survivors” or “Former or Survivor” or “Latter or Survivor” will permit the surviving account holder(s) to have unimpeded access to the credit balance in the account for withdrawal if one of the co-account holders dies.
- If the mandate of survivorship is given / provided, the survivor(s) can give a valid discharge to the bank in the case of “Either or Survivor” / “Anyone or Survivors” and “Former or Survivor” / “Latter or Survivor” joint accounts.
FAQs
✔ What types of accounts will be covered for settlement of claims of deceased constituents?
Saving accounts, sole proprietor accounts, term deposit accounts, and safe deposit lockers.
✔ How claims for settlement of deceased constituent accounts can be lodged in the new framework?
➤ For Deposit Account – By visiting any of the SUCO Bank branch
➤ For Safe Deposit Lockers – By visiting the branch where the deceased has safe deposit locker
✔ What is the procedure of settlement for deposit accounts with nominee or survivorship clause?
A deposit account where a depositor had made nomination in terms of the provisions of the Banking Regulation Act, 1949 or where the account was opened with survivorship clause, the payment of the outstanding balance upon the death of the depositor(s) to the nominee(s)/ survivor(s) will be made under simplification procedure shall be considered a valid discharge of a bank’s liability.
✔ What is the procedure of settlement for deposit accounts without nominee or survivorship clause?
A deposit account where a depositor had not made nomination in terms of the provisions of the Banking Regulation Act, 1949 or where the account was opened without survivorship clause, a threshold base settlement procedure will be followed.
✔ What if, nomination is registered in favour of a minor?
If the nominee is a minor, the person appointed as guardian to act on behalf of the minor by the deceased account holder, until he/she attains majority.
✔ What are the timelines for settlement of the deceased claims?
➤ Settlement of the claim in respect of deposit accounts of a deceased customer will be done within a period not exceeding 15 calendar days from the date of receipt of all the required documents associated with the claim.
➤ For safe deposit locker(s), the claim will be processed within 15 calendar days of receipt of all the required documents and communication with the claimant(s) for fixing the date for making inventory of the locker contents.
✔ What will happen if the term deposit(s) are withdrawn before maturity by claimant?
In case of payment of Time Deposits before maturity, the interest shall be paid at the rate applicable for the period for which the deposit has run and will not attract penal charges levied on normal before maturity payment cases.
✔ What is the provision of claim regarding missing person?
The nominee(s)/ legal heir(s) of a missing person shall be required to get an order from the competent court under the provisions of Sections 110 or 111 of the Bharatiya Sakshya Adhiniyam, 2023. The claim in respect of such missing person shall be settled as per the procedure applicable for settlement of claims in respect of a deceased customer.
✔ Where can I get the documentation requirements for settlement of deceased claims?
Please refer to the TAB “Documentation Requirements for Claim Settlements“ for detailed documentation required basis the scenarios.
✔ How can the deceased claims be settled basis the “Will”?
The bank will settle claims involving ‘Will’ left behind by a deceased depositor based on Probate of Will/ Letter of Administration, as applicable for scenario type, in addition to documents mentioned in “Documentation Requirements for Claim Settlements” TAB
Documentation Requirements for Claim Settlements
Settlement of Claims in Deposit Accounts, Safe Deposit locker & release of locker contents of Deceased Depositor- Simplified Procedure
| Scenario Type | Threshold / Clause | Documents to be submitted |
| Settlement of claims for deposit accounts with nominee(s)/ survivorship clause | Any Amount |
|
| Settlement of claims for deposit accounts without nominee/ survivorship clause | ≤ ₹5 lakh |
|
| >₹5 lakh |
| |
| Settlement of Claims for Deposit accounts involving ‘Will’ without any dispute | Any Amount |
|
| Settlement of Claims for Deposit accounts involving ‘Will’ with contesting claims / dispute | Any Amount |
|
| Settlement of claims in respect of missing persons | ≤ ₹1 lakh |
Term Deposits
|
| >₹1lakh | The claim in respect of such missing person shall be settled as per the procedure applicable for settlement of claims in respect of a deceased customer basis the scenario type ( With & Without Nomination (s) / Survivorship clause) | |
| Settlement of Claims in Safe Deposit Locker for Claims with Nominee/ Survivorship clause | Sole Locker with Nomination & Jointly operated locker with Nomination |
|
| Settlement of Claims in Safe Deposit Locker for Claims without Nominee/ Survivorship clause | No Nomination No Survivorship Clause No Will Left behind by deceased locker hirer. |
|
| Settlement of Claims for Safe Deposit Locker involving ‘Will’ without any dispute | NA |
|
| Settlement of Claims for Safe Deposit Locker involving ‘Will’ with contesting claims/ dispute | NA |
|
| Procedure for taking inventory of contents of safe deposit locker | NA |
|
Contact Us & Grievance Redressal
- The customer may also reach to our SUCO Souharda Sahakari Bank representative
Grievance Redressal
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