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Following Wednesday’s Monetary Policy Committee (MPC) meeting, the Reserve Bank of India (RBI) has proposed a primary regulatory change to streamline the process for settling claims in the event of the death of depositors. A draft circular will be issued shortly for public consultation, the central bank said.
"Under the provisions of Banking Regulation Act, 1949… the extant instructions require banks to adopt a simplified procedure to facilitate expeditious and hassle-free settlement of claims made by survivors/nominees/legal heirs, the procedures vary across banks. To enhance customer service standards, it has been decided to streamline the procedures and standardise the documentation to be submitted to banks,” RBI noted in its Statement on Developmental and Regulatory Policies.
July 2025
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Although banks currently provide nomination facilities and are expected to follow streamlined procedures, the lack of standardisation across institutions often causes delays and difficulties for the legal heirs or nominees. To enhance customer service and ensure uniformity, RBI intends to implement a standardised procedure and standard documentation requirements.
According to BankBazaar.com CEO Adhil Shetty, the total value of unclaimed bank deposits lying in forgotten or overlooked accounts in India is estimated to be around ₹67,003 crore. "One big reason for these unclaimed deposits is that the depositors or their family members are either unaware of their existence or have misplaced the documents related to these deposits that could help them access these deposits," he said.
“Further, many accounts do not have nominees, which would have made it easier for the dependents to access the funds after the demise of the depositor,” he added.
RBI’s UDGAM portal, which allows family members to check for any unclaimed deposits and explore ways to access them, was the first step towards streamlining the process. However, the central bank has been clear that this is only one part of the solution.
Claiming an unclaimed deposit in the absence of a nominee is a painstaking process. Moreover, it is not standardised, and different banks may have vastly different processes for claiming lockers and deposits. RBI’s decision to standardise requirements and procedures across banks will make it easier for the family to access these investments.
"Nevertheless, it is equally important to educate people about the need to have a nominee for all their investments without exception," said Shetty. The importance of keeping your family informed of your investments and the ways they can access these, in case of an emergency, cannot be underplayed.
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