By Team INVC | INVC NEWS
Published: August 30, 2026 | 12 : 05 PM IST
MUMBAI, India | August 30, 2026 —
What happens to a bank account after the account holder dies depends largely on whether the account has a registered nominee, a survivorship instruction or neither. The money does not disappear and the bank does not automatically become its owner. However, withdrawals, ATM use, UPI transactions and cheque payments should stop once the bank is informed of the death.
The nominee, surviving account holder or legal heirs must submit a formal claim to the bank. Under the Reserve Bank of India’s current framework, banks are generally required to settle a deceased-depositor claim within 15 calendar days after receiving all required documents.
The process is usually straightforward when a valid nominee or survivorship clause exists. It may require additional documents when no nominee was registered or when competing legal claims arise.
What Happens After the Bank Is Informed?
Once the bank receives credible information about the customer’s death, it verifies the death certificate and places appropriate restrictions on the account. The bank then examines whether the account is:
- a single account with a nominee;
- a joint account with a survivorship instruction;
- an account without a nominee;
- connected with a dispute, court order or competing claim.
The bank may also check whether the deceased held fixed deposits, lockers, safe-custody articles or other accounts with the same institution.
Family members should not continue using the deceased person’s debit card, PIN, cheque book, UPI application or internet-banking credentials. Even when the person using them is a close family member, operating the account after death without the bank’s authorisation can create legal and financial complications.
Claim Process When a Nominee Is Registered
A registered nominee can approach the bank and submit the prescribed claim form. Banks generally ask for:
- certified or original death certificate for verification;
- nominee’s identity and address proof;
- deceased customer’s account details;
- completed deceased-claim form;
- bank passbook, fixed-deposit receipt or other available records;
- nominee’s photograph and bank-account details for payment.
The exact checklist can differ slightly between banks.
Where a valid nomination exists, the bank should ordinarily not insist on a succession certificate, probate or letter of administration merely to release the deposit to the nominee. The bank must, however, verify the nominee’s identity, the account holder’s death and whether any restraining court order exists.
Payment to the nominee discharges the bank’s liability. However, nomination does not necessarily settle every inheritance dispute. The nominee generally receives the funds on behalf of the person or persons legally entitled to the deceased’s estate. Legal heirs can still raise a succession claim against the nominee where applicable.
What Happens to a Joint Bank Account?
The outcome depends on the operating mandate recorded by the bank.
Common mandates include:
- Either or Survivor;
- Anyone or Survivor;
- Former or Survivor;
- Jointly Operated;
- Latter or Survivor.
If the account contains an appropriate survivorship clause, the surviving holder may ordinarily continue or claim the balance according to the account mandate after submitting the death certificate and required identification.
A joint account does not automatically give the survivor an unrestricted right to the money in every situation. If the account required joint signatures and contained no survivorship instruction, the bank may also require participation from the deceased holder’s legal heirs.
The nominee’s right in a joint deposit account generally arises after the death of all account holders, subject to the account mandate and applicable rules.
What If There Is No Nominee?
The absence of a nominee does not mean the money is lost. The legal heirs can submit a claim to the bank.
Banks maintain board-approved policies for settling claims where there is no nominee or survivorship clause. For claims falling below the bank’s prescribed simplified-settlement threshold, the bank may accept documents such as:
- death certificate;
- claimant’s identity and address proof;
- legal-heir certificate or family-member certificate, where required;
- indemnity bond;
- declaration from other legal heirs;
- no-objection certificates;
- account and relationship details.
The threshold and precise documentation can differ from one bank to another.
For a large amount, a disputed estate or competing claims, the bank may ask for stronger legal documentation such as a succession certificate, probate of a will or letters of administration.
Therefore, claimants should first obtain the bank’s official deceased-claim form and written document checklist instead of relying on a generic list.
How Long Can a Bank Take to Settle the Claim?
The RBI’s current directions require a bank to settle a deceased customer’s deposit-account claim within 15 calendar days from the date it receives all required documents.
This timeline does not necessarily begin on the day a claimant first visits the branch. It begins after the complete set of documents associated with the claim has been received.
If original documents are needed for verification, the claimant should be allowed to present them at any branch, subject to the bank’s applicable procedure.
Claimants should obtain a stamped acknowledgement or official reference number showing the submission date and documents provided.
The current RBI directions can be checked on the Reserve Bank of India website.
What Happens to Fixed Deposits?
A deceased customer’s fixed deposit does not simply lapse. The nominee, survivor or legal heirs can claim it according to the applicable mandate.
RBI directions require banks to provide for premature termination of a term deposit after the depositor’s death without a penal charge. Joint fixed deposits can involve additional conditions, particularly when no specific premature-withdrawal mandate was provided.
Claimants should ask the bank to calculate:
- principal amount;
- interest payable up to the applicable date;
- premature-closure treatment;
- tax deduction, if applicable;
- proceeds from all linked deposits.
What About Unclaimed Money?
If a deposit remains unclaimed for ten years, the amount may be transferred to the RBI’s Depositor Education and Awareness Fund. This transfer does not extinguish the claimant’s right to the money.
The customer, nominee or legal heir can still approach the concerned bank and submit a claim. The bank processes the claim and seeks reimbursement from the fund according to the applicable procedure.
The RBI’s UDGAM portal can help users search for unclaimed deposits across participating banks:
Search Unclaimed Deposits on RBI UDGAM
Steps Families Should Take Immediately
- Obtain several certified copies of the death certificate.
- Prepare a list of the deceased person’s bank accounts and deposits.
- Inform each bank through an official branch or designated channel.
- Stop using the deceased person’s ATM card, PIN, UPI and online-banking credentials.
- Request the bank’s deceased-claim form and written checklist.
- Check whether a nominee or survivorship mandate exists.
- Submit documents and obtain an acknowledgement.
- Follow up after the prescribed settlement period.
- Preserve tax statements and settlement records.
- Seek legal advice if heirs disagree or a will is contested.
Can a Bank Reject a Nominee’s Claim?
A bank can defer or question a claim if identification is incomplete, the nomination is invalid, documents conflict, fraud is suspected or a court has restrained payment.
However, the bank should not impose unnecessary legal-document requirements in a straightforward claim involving a valid nominee merely because the deposit amount is large.
If a complete claim remains unresolved, the claimant should first escalate it to the bank’s grievance-redressal officer. If the bank fails to resolve the complaint within the applicable period, the claimant may use the RBI Complaint Management System:
File a Complaint Through RBI CMS
Why Every Account Holder Should Register a Nominee
Nomination does not replace a will or succession planning, but it can significantly simplify the bank’s payment process after death.
Account holders should review nomination details whenever they:
- open a new account or fixed deposit;
- get married;
- have a child;
- experience a divorce or death in the family;
- change their succession plan;
- move important deposits to another bank.
They should also tell trusted family members where essential financial records are kept—without sharing passwords, PINs or one-time passwords.
A clear nomination, updated will and organised account list can spare a family months of avoidable difficulty.
Frequently Asked Questions
Can the nominee immediately withdraw money after death?
No. The nominee must inform the bank and complete its deceased-claim procedure. The deceased customer’s ATM, cheque, UPI or internet-banking credentials should not be used.
Is a succession certificate compulsory when a nominee exists?
Ordinarily, a bank should not insist on a succession certificate merely to pay a valid nominee, provided the required identity and death documents are satisfactory and no restraining court order exists.
Who receives the money if there is no nominee?
The legal heirs can claim it under the bank’s policy and applicable succession law. The required documents depend on the amount, family situation and whether the claim is disputed.
Does the nominee become the final owner of the money?
Payment to the nominee discharges the bank’s liability. However, legal heirs may retain succession rights against the nominee under applicable law.
Can an unclaimed deposit still be recovered after ten years?
Yes. The claimant can approach the bank even after the money has been transferred to the RBI’s Depositor Education and Awareness Fund.
