Settlement of Claims for Missing Persons: RBI Guidelines
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2007-08/308 · issued 02 May 2008 · ~2 min read
Quick answerRBI directs banks to settle missing person claims per Indian Evidence Act Sections 107/108. After 7 years missing, a court presumption of death is needed. Banks may set a threshold for simplified settlement using FIR, non-traceable report, and indemnity letter.
What changed
RBI clarified that claims for missing persons must follow Indian Evidence Act Sections 107/108, requiring a court presumption of death after 7 years. Banks are advised to formulate a policy for such claims, considering legal opinion and case specifics. For smaller claims, banks may set a threshold to settle without full documentation, using only FIR, non-traceable report, and indemnity letter.
What it means for you
Banks must now have a clear policy for missing person claims, balancing legal requirements with customer convenience. The threshold limit allows faster settlement for smaller amounts, reducing hardship for common persons. Banks need to integrate risk management systems to handle these claims efficiently.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Formulate a board-approved policy for settling claims of missing persons, incorporating legal opinion and case-by-case assessment.
Set a threshold limit for claims that can be settled with only FIR, non-traceable report, and indemnity letter, based on your risk management framework.
Ensure that for claims above the threshold or without simplified documentation, a court presumption of death under Section 108 of the Indian Evidence Act is obtained.
Train staff on the new process to handle such claims consistently and avoid customer inconvenience.
Who it affects
All scheduled commercial banks (excluding RRBs), Legal heirs and nominees of missing persons, Bank legal and compliance departments, Branch managers handling claim settlements
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn05 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the minimum period before a missing person can be presumed dead for claim settlement?
As per Section 108 of the Indian Evidence Act, 1872, a presumption of death can be raised only after seven years from the date the person was reported missing.
Can banks settle missing person claims without a court order?
Yes, for claims up to a threshold limit set by the bank, settlement can be done using only FIR, non-traceable report from police, and a letter of indemnity, without a court order.
What documents are needed for simplified settlement of missing person claims?
For claims within the bank's threshold, only the FIR, non-traceable report issued by police authorities, and a letter of indemnity are required.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
RBI’s words: “the provisions of Circular DBOD.No.Leg.BC.80/09.07.005/2007-08 dated May 2, 2008 on ‘Settlement of claims in respect of missing persons’ would be applicable in other cases”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2251: DBOD.No.Leg.BC.80/09.07.005/2007-08 — "Settlement of Claims in respect of Missing Persons" dated May 2, 2008”
📜 Read the original circular — full text as issued by RBI
RBI/2007-08/308
DBOD.No.Leg. BC.80 /09.07.005/2007-08
May 2, 2008
All Scheduled Commercial Banks
(Excluding RRBs)
Dear Sir,
Settlement of claims in respect of missing persons
A query has been raised regarding the system which should be followed by banks in case a claim is received from a nominee / legal heirs for settlement of claim in respect of missing persons.
2. The settlement of claims in respect of missing persons would be governed by the provisions of Section 107 / 108 of the Indian Evidence Act, 1872. Section 107 deals with presumption of continuance and Section 108 deals with presumption of death. As per the provisions of Section 108 of the Indian Evidence Act, presumption of death can be raised only after a lapse of seven years from the date of his/her being reported missing. As such, the nominee / legal heirs have to raise an express presumption of death of the subscriber under Section 107/108 of the Indian Evidence Act before a competent court. If the court presumes that he/she is dead, then the claim in respect of a missing person can be settled on the basis of the same.
3. Banks are advised to formulate a policy which would enable them to settle the claims of a missing person after considering the legal opinion and taking into account the facts and circumstances of each case. Further, keeping in view the imperative need to avoid inconvenience and undue hardship to the common person, banks are advised that keeping in view their risk management systems, they may fix a threshold limit, up to which claims in respect of missing persons could be settled without insisting on production of any documentation other than (i) FIR and the non-traceable report issued by police authorities and (ii) letter of indemnity.
Yours faithfully
(Prashant Saran)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-08/308 · issued 02 May 2008. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4157&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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