No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2007-08/317 · issued 12 May 2008 · ~2 min read
Quick answerRBI directs urban co-operative banks to settle missing person claims per Indian Evidence Act, requiring a court presumption of death after 7 years. Banks may set a threshold for simplified settlement using FIR, non-traceable report, and indemnity.
What changed
RBI clarified that UCBs must follow Sections 107/108 of the Indian Evidence Act for missing person claims, requiring a court presumption of death after 7 years. Banks are advised to formulate a policy and may fix a threshold limit for simplified settlement without full documentation.
What it means for you
UCBs now have a clear framework to handle missing person claims, reducing legal ambiguity. The option to set a threshold for simplified settlement helps banks manage risk while easing customer hardship, but requires careful policy formulation and legal review.
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 missing person claims, incorporating legal opinion and case-by-case assessment.
Set a threshold limit up to which claims can be settled with only FIR, non-traceable report, and indemnity letter.
Ensure claims above the threshold follow full legal process under Indian Evidence Act Sections 107/108.
Train staff on the new procedure and document all settlements for audit compliance.
Who it affects
Primary (Urban) Co-operative Banks, Legal heirs and nominees of missing depositors, Bank compliance and risk management teams
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 14:01 IST
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?
Under Section 108 of the Indian Evidence Act, a person can be presumed dead only after seven years from the date they were reported missing.
Can UCBs settle small claims without a court order?
Yes, if the bank sets a threshold limit, claims up to that amount can be settled using only an FIR, non-traceable report from police, and a letter of indemnity.
What documents are needed for simplified settlement?
For claims within the bank's threshold, only the FIR, police non-traceable report, and a letter of indemnity from the claimant are required.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2250: UBD (PCB) BPD Cir No:45/13.01.000/2007-08 — "Settlement of Claims in respect of Missing Persons" dated May 12, 2008”
📜 Read the original circular — full text as issued by RBI
RBI/2007-08/317
UBD (PCB) BPD Cir No: 45 /13.01.000/2007-08
May 12, 2008
The Chief Executive Officers of
All Primary (Urban) Co-operative Banks
Dear Sir / Madam,
Settlement of claims in respect of missing persons
A query has been raised regarding the system which should be followed by urban co-operative banks (UCBs) 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. UCBs 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, UCBs 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
(A. K. Khound)
Chief General Manager in Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-08/317 · issued 12 May 2008. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=4173&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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