No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2008-09/163 · issued 12 Sep 2008 · ~2 min read
Quick answerRBI directs RRBs to formulate a policy for settling claims of missing persons, using court presumption of death under Indian Evidence Act. For smaller claims, RRBs may set a threshold to settle with just FIR, non-traceable report, and indemnity, reducing hardship.
What changed
RBI clarified that settlement of claims for missing persons must follow Sections 107/108 of Indian Evidence Act, requiring court presumption of death after seven years. RRBs are now advised to set a threshold limit for small claims that can be settled without court order, using only police documents and indemnity.
What it means for you
RRBs can now streamline small-value missing person claims, reducing legal hurdles for common people. Banks must balance risk management with customer convenience by defining their own threshold and seeking legal opinion for each case. This reduces litigation burden and speeds up claim settlement for genuine heirs.
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, including a threshold limit for simplified documentation.
For claims above threshold, insist on court presumption of death under Indian Evidence Act before settlement.
For claims within threshold, accept FIR, non-traceable report from police, and letter of indemnity as sufficient documentation.
Seek legal opinion on each case to ensure compliance with facts and circumstances.
Acknowledge receipt of this circular to your respective RBI Regional Office.
Who it affects
Regional Rural Banks (RRBs), Nominees and legal heirs of missing persons, RRB customers with missing account holders
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 12:39 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, 1872, presumption of death can be raised only after seven years from the date the person was reported missing.
Can RRBs settle missing person claims without a court order?
Yes, for claims up to a threshold fixed by the bank's policy, RRBs can settle using only FIR, non-traceable report, and indemnity, without insisting on court presumption.
What documents are needed for simplified settlement of small claims?
The bank may accept (i) FIR and non-traceable report from police, and (ii) a letter of indemnity from the claimant.
📜 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 #2121: RPCD.CO.RRB.BC.No.26/03.05.33/2008-09 — "Settlement of Claims in respect of Missing Persons" dated September 12, 2008”
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/163
RPCD.CO.RRB.BC.No.26 /03.05.33/ 2008-09
September 12, 2008
The Chairmen
All Regional Rural Banks
Dear Sir,
Settlement of Claims in respect of Missing Persons
Of late, queries are being 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. Regional Rural Banks (RRBs) 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, RRBs 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.
4. Please acknowledge receipt to our concerned Regional Office.
Yours faithfully,
(C.K.Shah)
Deputy General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/163 · issued 12 Sep 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=4464&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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