Mumbai: The Reserve Bank of India (RBI) has introduced unified guidelines aimed at simplifying the process for banks when resolving claims made by the nominees or survivors of deceased customers. These guidelines are designed to eliminate inconsistent practices that have previously been a challenge among various lenders.

According to the central bank, when processing payments to a nominee or survivor of a deceased depositor, banks will not be required to insist on the production of legal documents such as a Succession Certificate, Letter of Administration, or Probate of Will. Furthermore, banks cannot seek any indemnity or surety bond from the nominee, survivor, or third parties, regardless of the amount in the deceased account holder's account.

For accounts that lack a nominee, will, or involve contesting claims, banks are permitted to settle amounts up to ₹5 lakh for cooperative banks and ₹15 lakh for other lenders. To do so, they will need to obtain a simple, RBI-mandated form, along with the death certificate of the deceased depositor and verified identity of the claimant. Additionally, banks must collect an indemnity bond from the claimant and a no-objection certificate from any non-claimant legal heirs, if applicable.

The RBI has also stated that a legal heir certificate issued by a competent authority or a declaration in a specified RBI format provided by an independent person, who is well-known to the deceased's family and not involved in the claim, can be accepted by banks.

In instances where the claims exceed the RBI's stipulated limits, a succession certificate is required alongside other documentation, including the death certificate, claimant's verified identity, indemnity bond, no-objection certificate from non-claimants, and legal heir certificate.

Moreover, if there’s no succession certificate available, an affidavit in the RBI format sworn before a notary or judge by an independent person who knows the family may also be submitted.

Banks are tasked with implementing these new procedures by March 31, 2026. In situations where the deceased only left a will and no survivor, or if an individual other than a legal heir is designated as a beneficiary, all relevant documents will need to be collected from the beneficiary to facilitate the claims process.

These guidelines aim to streamline the resolution process for deceased customer accounts, thereby providing a more efficient experience for bereaved families during a sensitive time.