No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/386 · issued 21 Jan 2013 · ~2 min read
Quick answerRBI has flagged that some Urban Co-operative Banks still demand indemnity bonds or legal papers from nominees/survivors for deceased depositor claims. Banks must follow existing simplified rules: no succession certificate, indemnity bond, or surety needed for accounts with survivor/nominee clause, regardless of amount.
What changed
RBI observed that some UCB branches are not following the simplified procedure for settling claims of deceased depositors, particularly insisting on indemnity bonds or legal representation from nominees. This circular reiterates the existing instructions from July 2005, emphasizing that banks must adhere to the simplified process without additional documentation.
What it means for you
UCBs must immediately ensure all branches comply with the simplified claim settlement process to avoid customer harassment and regulatory action. For accounts with survivor/nominee clause, no succession certificate, probate, or indemnity bond is required. For accounts without such clause, banks can set a threshold for claims settled with only a letter of indemnity, based on their risk management.
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
Instruct all branches to strictly follow the simplified procedure for deceased depositor claims, especially for accounts with survivor/nominee clause.
Ensure no branch demands succession certificate, probate, letter of administration, indemnity bond, or surety from nominees/survivors for any claim amount.
Review and communicate the minimum threshold limit for accounts without survivor/nominee clause where only a letter of indemnity is needed.
Provide guidance to deposit account holders and publicize the simplified process widely.
Acknowledge receipt of this circular to the respective Regional Office.
Who it affects
All Primary (Urban) Co-operative Banks, Branch managers and staff handling deposit claims, Nominees and survivors of deceased depositors
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Can a UCB ask for an indemnity bond from a nominee for a deceased depositor's account with a survivor clause?
No. RBI has clarified that for accounts with a survivor/nominee clause, banks must not insist on any indemnity bond, surety, succession certificate, or probate, regardless of the amount in the account.
What documentation is needed for accounts without a survivor/nominee clause?
Banks can set a minimum threshold limit based on their risk management. For claims up to that limit, only a letter of indemnity from the claimant is required, without additional legal documents.
What should a UCB do if a branch is found violating these rules?
The bank must immediately instruct the branch to comply with the simplified procedure and ensure no further insistence on unnecessary documentation. RBI expects strict adherence to facilitate hassle-free settlement.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
RBI’s words: “in partial modification of its Directive UBD.BPD. Dir. (Exp). No.9/13.05.000/ 2012-13 dated January 21, 2013”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1183: UBD.BPD.(PCB).CIR.No.32/13.01.000/2012-13 — "Settlement of Claims in Respect of Deceased Depositors - Simplification of Procedure - UCBs" dated January 21, 20”
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/386
UBD.BPD.(PCB)CIR No. 32/13.01.000/2012-13
January 21, 2013
The Chief Executive Officers
All Primary (Urban) Co-operative Banks
Dear Sir,
Settlement of Claims in respect of Deceased
Depositors – Simplification of Procedure - UCBs
Please refer to paragraph 2 of our circular UBD.BPD.CIR No.4/13.01.000/ 2005-06 dated July 14, 2005 on the captioned subject. In case of access to balance in deposits accounts with survivor /nominee clause, UCBs were advised that while making payment to the survivor(s) /nominee of the deceased depositor, the banks should desist from insisting on production of succession certificate, letter of administration or probate, etc., or obtain any bond of indemnity or surety from the survivor(s) /nominee, irrespective of the amount standing to the credit of the deceased account holder. As regards access to balance in deposits accounts without survivor /nominee clause, banks were advised that keeping in view their risk management systems, banks should fix a minimum threshold limit, for the balance in the account of the deceased depositors, up to which claims in respect of the deceased depositors could be settled without insisting on production of any documentation other than a letter of indemnity. UCBs were also advised to give wide publicity to the above and provide guidance to deposit account holders in this regard.
2. It has been brought to our notice that some of the branches of Urban Co-operative Banks were not following the simplified procedure for settlement of claims in respect of deceased depositors as prescribed in our circular under reference and were insisting on production of indemnity bond/legal representation from the nominees. We, therefore, advise all Urban Co-operative Banks to instruct all their branches to adhere the extant instructions on the subject to facilitate expeditious and hassle free settlement of claims on the death of a depositor.
3. Please acknowledge the receipt to the Regional Office concerned.
Yours faithfully,
(A.Udgata)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/386 · issued 21 Jan 2013. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 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=7817&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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