RBI to Standardise Claim Settlement for Bank Accounts and Lockers; Enhances Retail Direct Investment Features

Mumbai, August 6, 2025 — To improve customer service and reduce procedural burdens, Reserve Bank Governor Sanjay Malhotra announced that the central bank will now introduce a uniform claims settlement procedure. The procedure is for bank accounts and lockers held by deceased customers and will ensure consistency in documentation and execution across all banks.  Further, the initiative will ease the process for nominees and legal heirs of deceased individuals.

Retail Direct Platform Gets Auto-Bidding for Treasury Bills

In a separate update, the central bank also announced expanded functionality for the RBI Retail Direct platform .  The functionality allows retail investors to invest in Treasury Bills (T-bills) via systematic investment plans (SIPs) .

A new auto-bidding facility has been enabled, which permits the investors to automate their participation in primary auctions of T-bills.  This includes options for both fresh investments and re-investments.

The motive behind the move is to encourage disciplined investment habits and enhance retail participation in government securities.

Process for Nominee Claims

While there are existing RBI instructions that direct banks to follow a simplified process for nominee claim settlement, it was observed that practices differ from bank to bank.  To address this issue, the RBI added that a draft circular will soon be issued for public consultation in its Statement on Developmental and Regulatory Policies.  The circular will finalise the standardised framework, which will cover claims both with and without nomination .

Management Commentary

Announcing the development, Governor Malhotra said, “We will be standardising the procedure for settlement of claims in respect of bank accounts, and articles kept in safe custody or safe deposit lockers of deceased bank customers.  This is expected to make settlement more convenient and simpler.”

What Does this Imply?

By standardising claim procedures under a uniform protocol, RBI will be able to ensure consistency in documentation and ease the procedure for the nominee of the deceased customers.  Further, their decision to implement the new auto-bidding feature on the Retail Direct platform could help bring more structure and ease into their investment routines.

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