Mumbai: Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday announced that the central bank will soon introduce a standardised procedure for settling claims related to bank accounts and lockers of deceased customers.
The move aims to simplify and streamline the process for nominees to access funds or valuables after the death of a customer, reducing the hardship faced by families.
“To enhance convenience, we will standardise the procedure for settling claims related to bank accounts, safe custody items, and safe deposit lockers of deceased customers,” Malhotra said during the announcement of the RBI’s third bi-monthly monetary policy.
As per the Banking Regulation Act, 1949, banks offer nomination facilities for deposit accounts, articles in safe custody, and locker contents to facilitate quicker and smoother settlement of claims. However, despite existing guidelines that call for a simplified claims process, the procedures differ across banks, leading to inconsistencies.
“To improve customer service standards, we have decided to streamline the process and standardise the documentation required by banks,” the RBI said in its Statement on Developmental and Regulatory Policies. A draft circular will soon be released for public consultation.
Currently, while most banks have internal procedures in place for claim settlements by nominees, there are variations in the documentation required—especially in cases where no nomination has been made. The RBI aims to bring uniformity and simplicity to these procedures.
In addition, the RBI plans to enhance the Retail Direct platform by enabling retail investors to invest in treasury bills (T-bills) through systematic investment plans (SIPs). A new auto-bidding feature has been introduced, allowing investors to automate bids for both fresh and reinvested purchases in primary auctions of T-bills.
Launched in November 2021, the RBI’s Retail Direct portal allows retail investors to open Gilt accounts and invest in Government Securities (G-Secs) in both primary and secondary markets. Since its inception, the platform has added several new features, including expanded product offerings, multiple payment options, and a dedicated mobile app launched in May 2024.
