What can a bank legally ask for when someone dies?
The RBI (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025, issued on 26 September 2025, cap what a bank may demand. With a nominee, the bank pays on a claim form, death certificate and identity proof — nothing more. Without a nominee, every scheduled bank must settle below at least ₹15 lakh on declarations and an indemnity, and must finish a complete file within 15 days.
Accounts with a nominee or survivorship
The bank establishes the death and the nominee’s identity, then pays. It must not ask for a succession certificate, letters of administration, probate, or a surety indemnity from the nominee, whatever the balance.
Payment to the nominee discharges the bank. It does not decide ownership between the heirs. That remains succession law.
Accounts with no nominee
Paragraph 7(h) makes every bank publish a threshold. The floor is ₹15 lakh at a scheduled bank and ₹5 lakh at a co-operative bank. A bank may set a higher limit. It may not set a lower one.
Below the threshold: claim form, death certificate, claimant KYC, indemnity by the claimants, and a disclaimer from heirs who are not claiming. Third-party sureties are not a lawful extra demand on that path.
Above the threshold the bank may ask for a succession certificate, or for a legal heir certificate or a prescribed affidavit plus indemnity, according to its policy.
The 15-day clock
Paragraph 31 gives the bank 15 calendar days from receipt of every document it is entitled to ask for. An incomplete first submission does not start that clock.
Banks had until 2026-03-31 to bring their own policies in line. If a branch is still working from an older circular, ask them to show the current policy against the RBI directions.
How to use this at the counter
Carry a printed copy of the directions. Ask the officer to mark, on your acknowledgement, which paragraph they are relying on for any extra document.
If the file is complete and the days have run, use the bank’s grievance portal and then the RBI Ombudsman. The directions are the complaint, not a speech at the counter.
Common questions
- Is ₹15 lakh a guarantee that my bank will not send me to court?
- It is the floor, not a promise of a higher limit. Your bank may have set ₹20 lakh or ₹30 lakh. It cannot have set ₹5 lakh if it is a scheduled bank. Ask for its policy.
- Where can I read the directions?
- On the RBI website. The notification was issued on 2025-09-26. The official page is the one to print, not a blog summary.
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Last reviewed 2026-09-24. This is general information, not legal advice. Institution requirements change — confirm before you file.