RBI Introduces Streamlined Claim Process for Deceased Customers

The Reserve Bank of India (RBI) has announced new standardized procedures for settling claims related to the bank accounts and safe deposit lockers of deceased customers. This update, revealed by RBI Governor Sanjay Malhotra, aims to simplify the claims process, making it more accessible for families and beneficiaries.

During a recent policy announcement, Malhotra stated, “We will be standardizing the procedure for settlement of claims in respect of bank accounts and articles kept in safe custody or, in other words, safe deposit lockers of deceased bank customers.” This initiative is expected to enhance the convenience of settling claims, reducing the complexity often associated with the process.

Outreach Initiative for Re-KYC

In addition to the claims procedure, the RBI has launched a three-month outreach initiative focused on the re-KYC (Know Your Customer) process for the Pradhan Mantri Jan Dhan Yojana (PMJDY). Many accounts under this scheme, which was introduced approximately a decade ago, are now due for re-KYC updates.

“With the Jan Dhan scheme completing ten years, a significant number of accounts have become due for re-KYC,” Malhotra noted. The initiative will run from July 1, 2023, to September 30, 2023, and will include organized camps at the Panchayat level. These camps aim to bring banking services directly to customers, facilitating the opening of new accounts and re-KYC processes. Additionally, they will promote financial inclusion through micro-insurance and pension schemes.

Malhotra emphasized the importance of this outreach, stating, “The camps are aimed at bringing services to customers’ doorsteps,” highlighting the role of re-KYC in maintaining the integrity of Jan Dhan accounts. This approach not only addresses the need for compliance but also ensures that rural and underserved populations continue to benefit from the formal financial system.

Expansion of RBI Retail Direct Platform

Further enhancing financial accessibility, the RBI has announced plans to expand the functionality of the RBI Retail Direct platform. This will enable retail investors to invest in treasury bills through Systematic Investment Plans (SIPs). Malhotra remarked, “We are expanding the functionality in the RBI retail direct platform to enable retail investors to invest in treasury bills through systematic investment plans.”

This move is part of a broader strategy to encourage investment among retail customers, making it easier for them to participate in government securities while promoting a more inclusive financial ecosystem.

The initiatives introduced by the RBI reflect a commitment to improving customer experience and enhancing access to banking services across India. By standardizing claim processes and promoting financial inclusion, the RBI aims to foster a more reliable and user-friendly banking environment for all citizens.