The Reserve Bank of India (RBI) is making it easier for families to settle claims on deceased customers’ bank accounts and lockers. RBI Governor Sanjay Malhotra announced the move after the Monetary Policy Committee (MPC) meeting on August 6, 2025.
Currently, families often struggle with different banks’ processes, which can be slow and confusing. The RBI wants to fix this by setting up a single, standard way for all banks to handle these claims nationwide.
What’s Changing?
Currently, banks have their own ways of handling claims, based on guidelines from groups like the Indian Banks’ Association (IBA). These processes are based on laws like the Banking Regulation Act of 1949 and the Indian Succession Act.
Banks should settle claims within 15 days once they receive all the paperwork, like the death certificate and ID for the person making the claim. They also need to ensure that the locker contents go to the right person. But because each bank has its own forms and rules, it often leads to problems.
Easier for Families
Governor Malhotra said the RBI’s new policy will make things simpler and clearer for families. He noted that they want to make the process straightforward so people don’t face extra stress when dealing with a loss.
This change should really help people, especially in rural areas where these processes can be difficult to understand. By having one clear process, the RBI hopes to ease some of the worry and financial strain for families.
What’s Next?
Banks will soon have to use this standard process, so all customers are treated the same. Banks will also have to report any claim settlement delays to their customer service committees, which should help identify and address issues more quickly.