Mumbai, Aug 6: The Reserve Bank of India (RBI) announced on Wednesday that it is taking steps to standardize and simplify the process for settling claims related to the deposit accounts of deceased bank customers. This move aims to ease the financial burden on grieving families and ensure that they can access the money or valuables owed to them without unnecessary delays.
Currently, the process for settling claims concerning deceased customers varies between different banks. The RBI has decided to streamline and standardize these procedures across all banks, making the process more efficient.
RBI Governor Sanjay Malhotra explained, “We will standardize the procedure for settling claims related to bank accounts and items stored in safe deposit lockers or safe custody, which will make the settlement process more convenient and simpler.”
A draft circular for public consultation regarding these changes will be issued shortly, according to the RBI.
Under the Banking Regulation Act, 1949, a nomination facility is available for deposit accounts and items in safe custody or deposit lockers. This facility is designed to ensure the quick settlement of claims or the return of items upon the death of a customer, minimizing hardship for the family.
While the current guidelines require banks to adopt a simplified process for claim settlements by survivors, nominees, or legal heirs, the procedures vary from bank to bank.
To enhance customer service standards, the RBI has decided to introduce a unified process and standardize the documentation required for claim settlements. A draft circular on this matter will be released soon for public consultation.
In addition to these changes, the RBI has announced the introduction of an auto-bidding facility for Retail Direct Investments and Re-investments in Treasury Bills (T-Bills).
“An auto-bidding facility for T-bills, covering both investment and re-investment options, will now be available in Retail Direct. This new feature will allow investors to automatically place bids in primary auctions of T-bills,” said the RBI in its statement.
The Retail Direct portal, launched in November 2021, was designed to enable retail investors to open Gilt accounts with the Reserve Bank and participate in the buying and selling of Government Securities (G-Secs). Since its launch, new features including a mobile app released in May 2024 have been added to further enhance the platform's services.
