Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday said the central bank will streamline and standardize the process for settlement of claims of bank accounts, lockers of the deceased.
The initiative aims to simplify the process of settlement of claims in favor of nominees of deceased customers. Malhotra said that apart from this, the central bank is planning to expand the functionality of the RBI ‘Retail-Direct’ platform so that retail investors can invest in treasury bills (government securities) through systematic investment plans (SIPs).
Giving information about the third bi-monthly monetary policy review of the current financial year, he said that we are taking steps to standardize the process of settlement of claims related to the items kept in the bank accounts and lockers of the deceased. This is expected to make the settlement more convenient and smooth.
Its objective is to settle claims promptly
Under the provisions of the Banking Regulation Act, 1949, the facility of ‘nominee’ is available in respect of articles kept in deposit accounts, lockers. According to RBI’s statement on developmental and regulatory policies, it is aimed at facilitating prompt settlement of claims or return of articles or safe deposit locker contents on the death of the customer and to minimise hardship to family members.
As per the existing instructions, banks are required to adopt a simplified procedure to facilitate prompt and hassle-free settlement of claims made by ‘nominee’ persons/legal heirs. At present, these procedures vary in different banks. According to RBI, with a view to improving customer service standards, it has been decided to streamline the procedures and standardise the documents to be submitted to banks.
The draft will be released soon
A draft circular in this regard will be issued for public consultation soon.” Currently, all banks have their own systems and procedures in respect of claims relating to account and locker by the ‘nominee’ of the deceased person. Similarly, there may be some variation in the procedures of banks for accounts without a ‘nominee’. This move will standardise and simplify the process.
