RBI Simplifies Claims for Deceased Customers

Mumbai, Aug 6 (PTI) Reserve Bank Governor Sanjay Malhotra on Wednesday said the central bank will standardise the claims settlement procedure for bank accounts and lockers.

This is aimed at simplifying the process for settlement of claims in favour of nominees of deceased customers.

Besides, he said, the central bank plans to expand the functionality in RBI Retail-Direct platform to enable retail investors to invest in treasury bills through systematic investment plans.

"We will be standardising the procedure for settlement of claims in respect of bank accounts, and articles kept in safe custody or safe deposit lockers of deceased bank customers. This is expected to make settlement more convenient and simpler," he said while addressing the third bi-monthly monetary policy.

Under the provisions of Banking Regulation Act, 1949, nomination facility is available in respect of deposit accounts, articles kept in safe custody or safe deposit lockers.

This is intended to facilitate expeditious settlement of claims or return of articles or release of contents of safe deposit locker upon death of a customer and to minimise hardship caused to family members, according to Statement on Developmental and Regulatory Policies released by the RBI.

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, it said.

"With a view to enhance customer service standards, it has been decided to streamline the procedures and standardise the documentation to be submitted to the banks. A draft circular in this regard shall be issued shortly for public consultation," it said.

Presently, all banks have their system and processes in place with regard to claims with respect to account and locker by nominee of deceased but there may be some difference with respect to papers sought.

Similarly, for accounts without nomination there may be some variance among banks which may be standardised and simpler.

With regard to investment in treasury bills (T-bills), it said, this will enable investors to systematically plan their investments, an auto-bidding facility for T-bills, covering both investment and re-investment options, has been enabled in Retail Direct.

The new functionality helps investors to mandate automatic placement of bids in primary auctions of T-bills, it said.

The Retail Direct portal was launched in November 2021 to facilitate retail investors to open their Gilt accounts with the Reserve Bank under the Retail Direct Scheme.

The scheme allows retail investors to buy Government Securities (G-Secs) in primary auctions as well as buy and sell G-Secs in the secondary market.

Since the launch of the Scheme, various new features, in terms of product as well as payment options, have been introduced, including launch of a mobile app in May 2024.