How to Claim Money From a Deceased Person's Bank Account in India: Nominee, Legal Heir and Documents

Claiming money from a deceased person's bank account in India depends mainly on whether the account had a nominee, a joint holder, or neither. The Reserve Bank of India has laid down a settlement framework that banks must follow, and in many cases the process is far simpler than families expect. This guide explains how to claim money from a deceased person's bank account, the difference a nomination makes, the documents required, and how long a bank may take to release the funds.

If There Is a Nominee or Joint Holder

Where the account holder had appointed a nominee, the bank is required to release the balance to the nominee on production of basic documents. In this situation the bank cannot insist on a succession certificate, probate, or an indemnity bond, regardless of the amount. The nominee usually needs only a duly filled claim form, the death certificate, and valid identity proof. It is important to understand, however, that a nominee receives the money as a trustee and is not automatically the ultimate owner: the funds still belong to the legal heirs under the applicable succession law. Our explainer on the difference between a nominee and a legal heir sets out this distinction in detail. Where the account is held jointly with a survivorship clause, the balance simply passes to the surviving holder.

If There Is No Nominee: The Simplified Procedure

Where there is no nominee and no surviving joint holder, the RBI framework provides a simplified procedure for claims up to a threshold that each bank fixes within RBI guidance. For such claims the legal heirs typically submit a claim form signed by all claimants, the death certificate, valid identity proof, a bond of indemnity, and a letter of disclaimer or no-objection from any legal heirs who are not making the claim. This avoids the need to go to court for smaller balances. Families should ask the specific bank for its threshold and its list of accepted documents, as these are set within the RBI framework.

Larger Balances: Succession Certificate or Legal Heir Certificate

For balances above the bank's simplified-procedure threshold, or where there is a dispute among heirs, the bank may require a legal document establishing entitlement. Depending on the situation and the amount, this could be a succession certificate, a letter of administration, probate of a will, or a court decree. A legal heir certificate obtained from the tehsildar or district authority may suffice for smaller matters and is quicker to obtain, while a succession certificate from the civil court is generally needed for larger amounts. Our guide on how to get a legal heir certificate explains that route.

Settlement Timelines and Compensation for Delay

The RBI framework requires banks to settle valid claims within a defined period, commonly cited as 15 days from receipt of all required documents. If a bank delays a deposit claim for reasons attributable to it, the customer may be entitled to compensation such as interest on the amount, and there are separate provisions for delayed access to lockers or safe custody articles. Keeping a clear record of when you submitted each document helps if you later need to press the bank on delay. Persistent inaction can be escalated to the bank's grievance redressal and then to the RBI's Ombudsman scheme.

Step-by-Step Summary

In practice the process runs as follows: obtain multiple certified copies of the death certificate; identify whether the account had a nominee or joint holder; approach the branch and collect the correct claim form; submit the form with the required documents based on your category; and follow up in writing until the balance is released or transferred. If a will exists, the executor should also secure probate where the law of the region requires it. Coordinating this with the transfer of other assets, such as shares and mutual funds after the holder's death, saves time and repeated visits.

Related Reading

For related estate matters, see how to file a nomination for a bank account, and how to transfer property after the owner's death.

Key Takeaways

1. If the account had a nominee, the bank must release the balance to the nominee on a claim form, death certificate and ID, without a succession certificate, but the nominee holds the money for the legal heirs. 2. A joint account with survivorship passes to the surviving holder. 3. Without a nominee, the RBI simplified procedure covers claims up to a bank-fixed threshold using an indemnity bond and no-objection letters. 4. Larger balances may need a succession certificate, legal heir certificate, probate, or court decree. 5. Banks are required to settle valid claims within about 15 days of receiving all documents, with compensation possible for attributable delay.