• The RBI has stated that in these cases insistence on production of legal representation is
superfluous and unwarranted. Banks should not ask for succession certificates, letter of
administration or probate. Banks should not seek to obtain any bond or indemnity;
• Where the deceased depositor has not made any nomination or the account does not
have a survivor clause banks are expected to follow a simplified procedure for repayment
to legal heirs without inconveniencing them.
• Deceased depositors may receive monies in their name. To avoid hardships banks should
either open an account styled “Estate of Shri ………….. , (the Deceased)” where all
amounts received are deposited or the survivor/ nominee can authorize the bank to return
the monies received with the remark “Account holder deceased”. The survivor/ nominee
can then approach the remitter to effect payment to them.
• Banks should settle claims and release payment within 15 days from receiving claim
along with documents such as proof of death of depositor.
• The above guidelines will be applicable for dealing with requests for access to the
deceased’s safe deposit lockers/ safe custody articles.
Closing an account
• To close an account all the account holders should write to the bank stating their intent
to close the account. They must also submit all unused cheques to the bank.
• The bank usually asks the account holder/s to sign one cheque in blank. This is the
demand by the account holder for the balance in his account.
• The bank may also request the customer to close his account if:
• The customer is no longer a desirable person.
• The account has not been operated for a long time.
• If a customer cannot be traced, the balance is placed in an unclaimed deposits account.
• If a statement or correspondence sent to the customer is returned, the balance should be
transferred to a dormant account (to keep a check on the account) or in some other
• No bank:
– May pay a rate of interest higher than that stipulate