- The nominee or claimant must submit a formal claim to the bank after the account holder passes away.
- The bank must settle the claim within 15 days from the date they receive the claim, provided you submit the death certificate and all valid documents.
The bank calculates this 15-day deadline from the exact day you submit the complete paperwork.
For example:
Let’s say a person passes away on September 1. The nominee submits the claim with all documents on September 5. If everything is correct, the bank must settle this claim within 15 days from September 5.
What about Fixed Deposits (FD)?
You can absolutely claim a Fixed Deposit in the deceased person’s name. RBI guidelines state that banks must allow premature withdrawal of the FD so the claimant can get the money.
You do not need to wait for the FD maturity date. The nominee or legal heir can just approach the bank, submit the death certificate, claim form, and KYC, and get the funds.
Why adding a nominee is crucial:
- Registering a nominee in your bank account makes things incredibly easy for your family.
- It simplifies the entire claim settlement process if the account holder dies unexpectedly.
- The RBI strongly advises everyone to use the nomination facility for bank accounts and other financial assets.
So, make sure you check who is registered as a nominee in your family members’ bank accounts. You can easily update the details with the bank if the nominee has changed or if you haven’t added one yet.