Losing a loved one is hard enough. Dealing with bureaucratic hurdles to access their bank accounts shouldn’t add to the stress. The Reserve Bank of India (RBI) has stepped in to make life easier for grieving families. On Wednesday, the RBI announced plans to standardize and simplify the process for legal heirs claiming money from deceased customers’ bank accounts. This move aims to reduce the hassle faced by bereaved families when settling financial matters.
Right now, the process varies widely from bank to bank. Some require endless paperwork, while others demand multiple verifications. The RBI wants to end this inconsistency. “We will be standardizing the procedure for settlement of claims,” said RBI Governor Sanjay Malhotra. This includes not just bank accounts but also safe deposit lockers and articles kept in custody.
A draft circular outlining these changes will soon be open for public consultation. Once finalized, banks across India will have to follow a unified process, making it quicker and simpler for families to access what’s rightfully theirs. The Banking Regulation Act, 1949 already allows for nominations on deposit accounts and lockers. But the lack of uniform procedures has often delayed claims.
Imagine the frustration of needing immediate funds for funeral expenses or medical bills, only to get stuck in red tape. The RBI’s new guidelines will ensure a smoother, faster resolution. Survivors, nominees, or legal heirs won’t have to jump through hoops anymore. “This is expected to make the settlement more convenient and simpler,” Malhotra added.
In another move, the RBI is introducing auto-bidding for Retail Direct investors in Treasury bills (T-bills). This feature, available on the Retail Direct portal, lets users automate their bids in primary auctions. Launched in 2021, Retail Direct has been a game-changer for retail investors looking to trade Government Securities (G-Secs). The addition of auto-bidding is just the latest upgrade, following the launch of a mobile app earlier this year.
Customer service is at the heart of these changes. Whether it’s grieving families or retail investors, the RBI is focusing on streamlining processes. Less paperwork, fewer delays, and more transparency. That’s the goal. And with public feedback soon to be incorporated, these policies could become even more user-friendly.
The days of running from branch to branch with a stack of documents may soon be over. For families already dealing with loss, this is a small but significant relief. The RBI’s push for standardization shows a clear intent to prioritize people over procedures.