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  3. 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.

For details on nomination facility, please refer to below Link:

https://www.indusind.bank.in/in/en/personal/rbi-notifications/nomination-facility.html  

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 IndusInd 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
  • Claim form (Annex I-A), duly filled and signed by the nominee(s) / survivor(s)
  • Death certificate of the deceased depositor(s)
  • Officially Valid Document of the nominee/ survivor
    Term Deposits:
  • Premature termination of term deposits opened jointly, with/ without survivorship clause, shall require the consent of the surviving depositors and the legal heir(s) of the deceased joint holder, in case of death of one of the depositors
  • In case specific mandate is available in bank records furnished by all the depositors jointly to the bank, , then premature withdrawal option will be allowed to the survivors on the death of any of the depositors, without seeking the concurrence of the legal heir(s) of the deceased joint deposit holder
Settlement of claims for deposit accounts without nominee/ survivorship clause ≤ ₹15 lakh
  • Claim form (Annex I-B), duly filled in and signed by the claimant(s) other than those who have signed the letter of disclaimer/ no objection
  • Death certificate of the deceased depositor(s)
  • Officially Valid Document of the nominee/ survivor 
  • Bond of indemnity (Annex I-C) signed by the claimant(s)
  • Letter of disclaimer/ no objection (Annex I-D) from non-claimant legal heir(s), if applicable
  • Legal Heir Certificate issued by a competent authority
    OR
  • Declaration (Annex I-E), regarding the legal heir(s) of the deceased depositor(s) by an independent person who is well known to the family of the deceased, is not a party to the claim and is acceptable to the bank.
>₹15 lakh
  • Claim form (Annex I-B), duly filled in and signed by the claimant(s) other than those who have signed the letter of disclaimer/ no objection
  • Death certificate of the deceased depositor(s)
  • Officially Valid Document of the nominee/ survivor 
  • Succession Certificate
    OR
  • Legal Heir Certificate issued by a competent authority
    OR
  • Affidavit (Annex I-E ) sworn before a Notary Public/ Judge/ Judicial Magistrate regarding the legal heir(s) of the deceased depositor, by an independent person who is well known to the family of the deceased, is not a party to the claim and is acceptable to the bank and  Bond of surety (Annex I-C) from third-party individuals and letter of disclaimer/ no objection( Annex I-D) from non-claimant legal heir(s), if applicable
Settlement of Claims for Deposit accounts involving ‘Will’ without any dispute Any Amount
  • Claim form (Annex I-B), duly filled in and signed by the claimant(s) other than those who have signed the letter of disclaimer/ no objection .
  • Death certificate of the deceased depositor(s)
  • Probate of Will/ Letter of Administration, as applicable
  • Officially Valid Document of the claimant(s)
  • In case a person other than a legal heir is named as a beneficiary in the Will, documents (OVD / Annexure) etc. to be provided by her/ him.
    If any inconsistency / exceptions in the  will is observed, bank may call for additional documents with above mentioned documents:
  • Bond of indemnity,( Annex I-C), signed by the claimant(s)
  • Letter of disclaimer/ no objection( Annex I-D) signed from non-claimant legal heir(s), if applicable
Settlement of Claims for Deposit accounts involving ‘Will’ with contesting claims / dispute Any Amount
  • Claim form (Annex I-B), duly filled in and signed by the claimant(s) other than those who have signed the letter of disclaimer/ no objection as per scenario type.
  • Death certificate of the deceased depositor(s)
  • Officially Valid Document of the claimant(s)
  • Probate of Will
     OR
  • Letter of Administration
    OR 
  • Succession Certificate
    OR
  • Court order/ decree, as applicable
    There should not be any order from a Court restraining the bank from making the payment, the claim shall not be entertained during the period the order is in force.
Settlement of claims in respect of missing persons ≤ ₹1 lakh
  • Claim form ( Annex I-A), duly filled and signed by the nominee(s) / survivor(s)
    OR
    (Annex I-B), duly filled in and signed by the claimant(s) other than those who have signed the letter of disclaimer/ no objection as per scenario type.
  • First Information Report (FIR) and non-traceable report issued by police authorities of the deceased depositor(s)
    OR
  • An order from a competent court declaring the civil death of the account holder.
  • Officially Valid Document of the nominee/ survivor 
Term Deposits 
  • Premature termination of term deposits opened jointly, with/ without survivorship clause, shall require the consent of the surviving depositors and the legal heir(s) of the deceased joint holder, in case of death of one of the depositors
  • In case specific mandate is available in bank records furnished by all the depositors jointly to the bank, , then premature withdrawal option will be allowed to the survivors on the death of any of the depositors, without seeking the concurrence of the legal heir(s) of the deceased joint deposit holder
>₹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
  • Claim form (Annex I-A) duly signed by the nominee(s)/ survivor(s)
  • Death certificate of the safe deposit locker hirer(s)
  • Officially Valid Document of the nominee/ survivor
    If any inconsistency / discrepancy is observed in the nomination,  bank may call for additional documents with above mentioned documents:
  • Succession Certificate, Letter of Administration, Probate of Will, etc.
    OR 
    Bond of indemnity (Annex I-H) from the nominee(s)/ survivor(s)
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.
  • Claim form (Annex I-B), duly filled and signed by the claimant legal heir(s)
  • Death certificate of the safe deposit locker hirer(s);
  • Officially Valid Document of the claimant(s)
  • Letter of disclaimer/ no objection, as given in (Annex I-D), from non-claimant legal heir(s), if applicable
  • Legal Heir Certificate issued by a competent authority
    OR
    Affidavit ( Annex I-E) sworn before a Notary Public/ Judge/ Judicial Magistrate regarding the legal heir(s) of the deceased locker hirer(s) by an independent person who is well known to the family of the deceased, is not a party to the claim and is acceptable to the bank.
Settlement of Claims for Safe Deposit Locker involving ‘Will’ without any dispute NA
  • Claim form (Annex I-B),  duly filled and signed by the claimant / legal heir(s)
  • Death certificate of the safe deposit locker hirer(s)
  • Probate of Will/ Letter of Administration, as applicable
  • Officially Valid Document of the claimant(s)
  • In case a person other than a legal heir is named as a beneficiary in the Will, documents (OVD / Annexure) etc. to be provided by her/ him.
    If any inconsistency / exceptions in the  will is observed, bank may call for additional documents with above mentioned documents:
  • Letter of disclaimer/ no objection (Annex I-D), from non-claimant legal heir(s), if applicable; 
  • Legal Heir Certificate issued by a competent authority or Affidavit ( Annex I-E) sworn before a Notary Public/ Judge/ Judicial Magistrate regarding the legal heir(s) of the deceased locker hirer(s) by an independent person who is well known to the family of the deceased, is not a party to the claim and is acceptable to the bank.
Settlement of Claims for Safe Deposit Locker involving ‘Will’ with contesting claims/ dispute NA
  • Claim form (Annex I-B),  duly filled and signed by the claimant / legal heir(s)
  • Death certificate of the safe deposit locker hirer(s)
  • Officially Valid Document of the claimant(s)
  • Probate of Will
    OR
  • Letter of Administration
    OR 
  • Succession Certificate
    OR
  • Court order/ decree, as applicable
    There should not be any order from a Court restraining the bank from settling the claim(s) in respect to safe deposit lockers, the claim shall not be entertained during the period the order is in force.
Procedure for taking inventory of contents of safe deposit locker NA
  • Post Submission of the required documents as per the scenario type for safe deposit lockers, Bank will  correspond with the claimant(s) in writing and fix a date and time for making an inventory of the contents of the safe deposit locker( Annex I-F) in the presence of all claimant(s) or their duly authorised representatives, two independent witnesses.
  • Valuation of the contents of the safe deposit locker shall be carried out by an independent valuer and recorded in the Bond of Indemnity (Annex I-H). (Except for cases settled basis of legal documents- Succession certificate, Probate of will etc.)
  • The claimant(s) or their duly authorised representative(s) may remove the contents of the locker subsequent to submission of the Bond of Indemnity (Annex I-H).

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