The procedure depends mainly on whether the account has a nominee, is a joint account with a survivorship mandate, or has neither.
First, Find Out Which Situation Applies
There Is a Registered Nominee
Where a valid nomination is registered, the claim is generally simpler. The nominee approaches the bank, provides proof of death and establishes their identity.
What Should the Nominee Take to the Bank?
Where a valid nomination exists and the claim is otherwise in order, the bank should not ordinarily insist on a Succession Certificate, Probate or Letters of Administration merely for making payment to the nominee.
For a detailed explanation, see BankBodh’s Nomination in Bank Accounts & Lockers guide.
Joint Account — One Account Holder Has Died
First check the mode of operation / survivorship mandate recorded for the account.
Simply having two or more names on an account is not enough. What happens after one holder dies depends on the mandate recorded with the bank.
Either or Survivor
If A and B hold an account on Either or Survivor basis and A dies, B can approach the bank as the surviving account holder, subject to the applicable verification and account terms.
Anyone or Survivor
Where there are several joint holders and the account operates as Anyone or Survivor, the surviving holder(s) continue according to the applicable survivorship mandate.
Former or Survivor
Where an account is held as Former or Survivor, the survivor’s right becomes relevant after the death of the former holder, subject to the applicable deposit terms.
No Survivorship Clause?
If the account requires joint operation and does not contain an applicable survivorship mandate, the surviving holder should not assume that the entire balance can simply be paid to them.
Settlement may involve the surviving holder(s) together with the legal heirs or representatives of the deceased holder, according to the bank’s deceased-claim procedure.
No Nominee and No Survivorship Mandate
If there is no nominee or survivorship mandate, first ask the bank whether the claim can be settled under its simplified deceased-claim procedure. A Succession Certificate may not be required for an eligible claim falling within the bank’s prescribed threshold and conditions.
What Is the Simplified Claim Threshold?
A bank may prescribe a monetary threshold for settling eligible deceased-depositor claims through a simpler procedure where there is no nomination and no survivorship mandate.
For determining whether the claim falls within that threshold, the bank may consider the total amount payable including accrued interest, according to its policy.
Suppose a bank has prescribed a simplified claim threshold of below ₹15 lakh, including accrued interest as on the date of application.
If the total claim is below ₹15 lakh and the other conditions of that bank’s policy are satisfied, the claim can ordinarily be processed through its simplified procedure. The claimant would generally not be required to obtain a Succession Certificate merely because there is no nominee.
If the claim is above that threshold, additional documents may be required under the particular bank’s deceased-claim policy.
Different banks may prescribe different thresholds, documents and safeguards. Also, even a claim within the monetary threshold may not qualify for the simplified route if there is a Will, competing claim, court restraint, dispute or another complication covered by the bank’s policy.
What Documents May Be Required?
Simple Example
What If the Deceased Left a Will?
Tell the bank about the Will at the beginning of the claim.
A claim involving a Will may require different documents or legal representation depending on the applicable succession law, the bank’s policy and the circumstances of the case.
Do not assume either way. Whether Probate, Letters of Administration or some other documentation is required can depend on the applicable law, the circumstances and the bank’s deceased-claim policy. Show the Will to the bank and ask what is required for that claim.
What Happens to an FD After the Depositor Dies?
An FD does not necessarily have to remain locked until maturity merely because the depositor has died.
Claim Before Maturity
The eligible nominee, survivor or claimant can ask the bank about premature settlement under the deceased-depositor procedure.
Premature termination following the depositor’s death should not attract a penal charge, subject to the applicable conditions. However, the interest payable may still depend on the period for which the deposit actually remained with the bank and the applicable deposit policy.
Want to Keep the FD Until Maturity?
Death does not mean that the family must automatically break the FD. Ask the bank about the amount payable on premature settlement and the amount payable if the deposit is allowed to mature before deciding.
Joint FD — One Depositor Dies
A survivorship clause does not necessarily mean that the survivor can prematurely close the FD in every case. Check whether the original deposit mandate permits premature withdrawal by the survivor after the death of the other depositor.
What About Money Credited After the Customer’s Death?
Credits can sometimes continue to arrive after death — for example, pension, dividend, refund or other payments.
Banks can obtain instructions from the survivor / nominee regarding treatment of such incoming amounts. Depending on the circumstances, the bank may receive eligible pipeline credits through an appropriate arrangement or return them to the remitter so that payment can be reissued to the proper beneficiary.
What If the Deceased Customer Had a Bank Locker?
Locker access after death depends on whether the locker was held singly or jointly and whether a nomination or survivorship mandate exists.
Sole Locker + Registered Nominee
After verifying the death and the nominee’s identity, the bank can give the nominee access to the locker and permit removal of its contents after completing the prescribed inventory formalities.
Joint Locker Requiring Joint Operation
Where the locker requires joint signatures and a joint hirer dies, the survivor(s) and nominee(s), as applicable, may jointly obtain access and remove the contents after the prescribed formalities, including inventory.
Joint Locker with Survivorship Clause
If the locker operates as Either or Survivor, Anyone or Survivor, Former or Survivor, or under another valid survivorship mandate, the bank follows that mandate after the death of a joint hirer.
In practical terms, the surviving hirer can continue to access the locker after the bank completes the required verification.
The locker does not have to be closed merely because one joint hirer has died.
Continuing to access a joint locker as the survivor is different from closing the locker and taking delivery of all its contents.
Where locker contents are actually being removed / released as part of settlement, the bank follows the applicable inventory procedure.
No Nominee and No Survivorship Mandate
Ask the bank for its deceased-locker claim procedure. Banks are required to have a customer-friendly procedure for giving access to the legal heir(s) / legal representative in such cases.
What If the Deceased Customer Also Had a Loan?
Before settling deposits or releasing securities, the bank may need to examine outstanding liabilities and any security or lien connected with them.
FD Pledged Against a Loan
If an FD is under lien as security for a loan or overdraft, the deceased-claim process does not by itself remove that security. Ask the bank for the outstanding liability and the net amount, if any, available after adjustment in accordance with the applicable terms.
Home Loan, Vehicle Loan or Other Secured Loan
Death of the borrower does not automatically extinguish the loan or the bank’s existing security.
Unsecured Loan / Credit Card
A legal heir does not become personally liable merely because they are a legal heir. However, liabilities of the deceased’s estate and the contractual liability of any co-borrower or guarantor are separate matters.
How Long Should a Deceased Claim Take?
RBI states that banks should settle deceased-depositor claims and release payment to survivor(s) / nominee(s) within a period not exceeding 15 days from receipt of the claim, subject to production of proof of death and satisfactory identification of the claimant(s).
Before You Visit the Bank
How Do I Obtain a Legal Heir Certificate?
A bank may ask for a Legal Heir Certificate or another acceptable document establishing the family / legal heirs of the deceased, particularly where there is no nominee or survivorship mandate.
Depending on the State or Union Territory, the document may be known as a Legal Heir Certificate, Surviving Member Certificate, Family Member Certificate or by another similar name. The competent authority and application procedure are determined by the applicable State / UT system.
Where Should I Apply?
Start with your State / UT’s official government, e-District or revenue-services portal. Where an online facility is not available, enquire with the local revenue / district administration about the competent authority for your area.
What Documents Are Commonly Required?
How Do I Obtain a Succession Certificate?
A Succession Certificate is a court-issued document relating to the debts and securities of a deceased person. It is not issued by the bank.
Do not apply for a Succession Certificate merely because the account holder died.
First check whether there is a valid nomination or survivorship mandate. If neither exists, ask whether the claim can still be settled under the bank’s simplified deceased-claim procedure.
Where Is the Application Made?
Under the Indian Succession Act, 1925, the application is made to the competent District Judge.
Generally, jurisdiction lies where the deceased ordinarily resided at the time of death. If the deceased had no fixed place of residence, the Act also provides for jurisdiction where part of the deceased’s property is situated.
What Does the Application Contain?
The petition generally contains particulars such as:
What Happens After Filing?
The court examines the application and follows the procedure prescribed under the Indian Succession Act, including notice and hearing as applicable, before deciding whether the certificate should be granted.
Official References
Reserve Bank of India — Deceased Depositor Claims:
Settlement of Claims in Respect of Deceased Depositors
Reserve Bank of India — Safe Deposit Lockers:
Safe Deposit Locker / Safe Custody Article Facility — Revised Instructions
Indian Succession Act, 1925:
Succession Certificates — Sections 370 onwards
Public Sector Bank — example of a bank-specific deceased-claim procedure:
Deceased Customer Claim Procedure
Banking procedures and claim requirements may change. Always check the latest requirements with the concerned bank before submitting a deceased-customer claim.
Banking rules, contact details and procedures can change. If you notice information on this page that appears outdated or incorrect, please let us know.