What is an indemnity bond, and why does the bank want one?
An indemnity bond is your written promise to repay the bank if someone with a better claim to the money turns up after it has been paid to you. Banks ask for it when there is no nominee, because they are paying out on your word rather than on a court order. It is executed on stamp paper, and above a certain amount the bank may want one or two sureties — people of means who countersign the promise.
What you are promising
That you are entitled to what you are claiming, that you have disclosed every legal heir, and that if a rightful claimant later appears, you — not the bank — will make good the amount. It is not a formality: it is the mechanism that lets a bank release money without a succession certificate, and it shifts the risk of a wrong payment onto you.
Sureties, and when they are asked for
Below a bank's no-surety limit, your own bond is enough. Above it, most public sector banks want one or two sureties who are acceptable to the bank — typically account holders with a balance or income comparable to the amount claimed. The limit differs by bank and is not published consistently, so ask the branch directly.
Formalities and the usual mistakes
Non-judicial stamp paper of the value your state prescribes for indemnity bonds, which is higher than for an affidavit. Signed by the claimant and any sureties, usually witnessed, and often notarised. Use the bank's own format if it has one.
The common mistakes are using the wrong stamp value, leaving the surety's details incomplete, and signing a bond for one account when the bank wanted one per account. Each sends the file back to the queue.
Find out what your case needs
The free check applies all of the above to your actual family and your actual accounts, and tells you the shares and the document list in two minutes.
Related
Last reviewed 2026-08-31. This is general information, not legal advice. Institution requirements change — confirm before you file.