Death claims: How some banks still pose hurdles3 min read 07 Aug 2023, 10:49 PM IST
The regulatory regime lacks adequate mechanism to prevent such occurrences, perhaps due to lack of accountability and levy of penalties.
A nominee of a bank account—savings or fixed deposit— is liable to receive proceeds from the said account on the demise of the account holder. This is as per the regulations of the Reserve Bank of India (RBI). Yet, not all banks implement this rule in true spirit and so nominees or legal heirs of account holders face numerous challenges during death claim processing. This is true of some large banks, where each of the branches are dependent on the rules followed by the zonal and regional offices in blatant violation of RBI guidelines.