The Reserve Bank of India is gearing up to make it easier for families to access money and valuables left behind by deceased bank customers. Announcing the move during the monetary policy outcome speech on August 7, RBI governor Sanjay Malhotra said the central bank will standardise the procedure for settling claims related to deposit accounts and safe deposit lockers.
If a bank customer passes away, their nominee or legal heir shouldn't have to run from pillar to post to access the account or locker. But that’s what currently happens, thanks to varying rules and documentation across banks.
The RBI now wants a single, uniform process to be adopted across all banks, backed by clearly defined document requirements. It also plans to streamline the documentation norms, so survivors or nominees know exactly what’s needed to make a claim.
“As the procedures vary from bank to bank, they need to adopt a simplified procedure to facilitate hassle-free settlement of claims,” said Malhotra.
In its statement, the RBI added that the goal is to enhance customer service standards and bring consistency to the claim settlement process, especially when a customer has passed away.
Bankers believe this is a much-needed fix. Some say a centralised policy for unclaimed deposits could bring clarity and reduce delays, especially when nominees don’t have accounts in the same bank as the deceased. That’s a common issue, and it complicates things further when automated transfers are not enabled.
Even something as basic as a mismatch in surnames across PAN and Aadhaar cards can become a headache. Bank officials say it’s time the industry moves away from rigid, manual processes and embraces automation and better integration across systems.
“If the nominee's name doesn't match or their ID details are inconsistent, it causes delays. There should be proper clarity on what documents are acceptable, and banks need to be linked better to speed things up,” said a senior official at Bank of Baroda quoted in a news report.
The RBI’s proposal doesn’t come with a timeline yet, but stakeholders are hopeful that a standardised approach could reduce emotional and logistical burdens for families at a difficult time.
