When a family member passes away, one of the first practical concerns that comes to mind is what happens to their bank accounts. The family may know the money is there, but accessing it can be more complicated, especially if there is no nominee.

If a nominee was named on the account, the process is relatively quick. The nominee presents the death certificate, completes the bank claim form, and the balance is released. But when no nominee is named, the process is longer and needs more documents.

This blog explains how to claim a bank account after death when there is no nominee, what documents banks ask for, how RBI rules help families, and how a Will makes the whole process easier.

Key Highlights

• When a bank account has no nominee, the balance goes to the legal heirs of the deceased

• The RBI Settlement of Claims Directions, 2025, require banks to settle claims within 15 calendar days of receiving all complete documents

• For balances up to Rs 15 lakh in commercial banks and Rs 5 lakh in cooperative banks, a legal heir certificate is generally enough. A succession certificate from court is not required within these limits

• For amounts above these limits or disputed claims, a succession certificate from a civil court is needed

• A nominee collects the balance as a trustee, not as the owner. They must hand it over to the rightful legal heirs

• A Will that names who should receive bank balances speeds up the claim process

What Happens to a Bank Account After Death in India?

When an account holder passes away, the bank freezes the account once it is notified. No withdrawals can be made after this point.

What happens next depends on whether a nominee was registered on the account.

If a nominee is named, the bank releases the balance to the nominee after verifying the death certificate and identity. This is faster and involves fewer documents.

If no nominee is named, the bank cannot release the money until the legal heirs prove their right to it. This involves more paperwork and takes more time.

In both cases, the nominee is not the legal owner of the money. The nominee collects the balance as a trustee and must hand it over to the legal heirs based on what the Will says or what the applicable succession law provides. AasaanWill's blog on the legal dynamics of nominee vs legal heir explains this distinction clearly.

The RBI's 2025 Directions also expressly state that payment to a nominee is made as a trustee of the legal heirs and does not affect the rights or claims of those entitled to the money.

What Is the Difference Between a Nominee and a Legal Heir for a Bank Account After Death?

A nominee is the person registered on the account to receive the balance when the account holder dies. The nominee's role is primarily to receive the money from the bank and hold it for the person or persons ultimately entitled to it under the applicable succession law or the deceased person's Will.

A legal heir is a person who is entitled to inherit the deceased person's assets under the applicable succession law. For Hindus, Sikhs, Jains, and Buddhists, the Hindu Succession Act, 1956, generally applies. For Christians and Parsis, succession is governed by the Indian Succession Act, 1925. For Muslims, Muslim Personal Law applies to succession.

If the deceased left a valid Will, the beneficiaries named in the Will are generally entitled to the estate in accordance with its terms and applicable law. The nominee may receive the bank balance from the bank, but nomination by itself does not determine who ultimately inherits the money.

The RBI has reinforced this distinction. Under the Reserve Bank of India (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025, when a bank pays the balance to a nominee, the nominee receives it as a trustee of the legal heirs of the deceased. The payment gives the bank a valid discharge of its liability, but it does not extinguish the rights or claims of the persons who are ultimately entitled to the money. 

This is why a bank nomination and a Will serve different purposes. The nomination can make it easier for the bank to release the money after your death, while the Will can set out who should ultimately receive your assets.

What Are the RBI Rules for Claiming a Bank Account After Death in India?

The Reserve Bank of India issued the Settlement of Claims in Respect of Deceased Customers of Banks Directions, 2025, which apply to all commercial banks and co-operative banks in India. The Directions standardise the process for settling claims relating to deceased customers' deposit accounts, lockers and articles held in safe custody.

Banks must settle a deceased customer's deposit claim within 15 calendar days from the date they receive all the required documents. If the delay is attributable to the bank, it must pay compensation at a rate of at least the bank rate plus 4% per annum on the amount payable for the period of delay.

If there is no nominee or survivorship clause, a simplified procedure applies to smaller claims. The threshold is ₹15 lakh for commercial banks and ₹5 lakh for co-operative banks, although a bank may prescribe a higher threshold. However, this simplified procedure applies only when there is no Will, no contesting claim, and no court order preventing payment. The bank can require specified documents such as the death certificate, identity and address proof, indemnity bond, and proof of the legal heirs.

For claims above the threshold, a succession certificate is not the only possible route. Depending on the circumstances, the bank may settle the claim based on a succession certificate, a legal heir certificate, or an affidavit/declaration regarding the legal heirs, along with the other required documents. Where there is a Will or a dispute among legal heirs or beneficiaries, a probate, a letter of administration, a succession certificate or a court order may be required, depending on the circumstances.

Banks must publish their claim forms and procedures on their websites. Claimants must be allowed to submit claims at any branch, against an acknowledgement. Banks may also offer online claim submission and tracking, but online filing is not mandatory under the RBI Directions.

What Documents Are Needed to Claim a Bank Account After Death Without a Nominee?

The table below shows what is typically required. Confirm with your specific bank before visiting, as forms and requirements may vary.

Note: Government requirements and bank-specific processes may vary. Verify the exact document list with your bank before submitting.

How to Claim a Savings or Current Account After Death Without a Nominee

The following steps listed below give clear instructions on how to claim a savings or current account after death without a nominee.

Step 1: Notify the bank. Contact the branch as soon as possible after the death. Ask about their specific claim process and forms. Different banks have slight variations.

Step 2: Collect the death certificate. A certified copy from the municipal authority is the starting document. Carry several copies, as multiple institutions may each need one.

Step 3: Establish legal heirship. For smaller balances, apply for a legal heir certificate from the Tehsildar or revenue authority. For larger balances or disputed claims, apply for a succession certificate from the civil court.

Step 4: Gather all documents. Collect identity proof, relationship proof, the bank claim form, indemnity bond, and no-objection letters from any other legal heirs not making the claim themselves.

Step 5: Submit everything together. Incomplete submissions restart the 15-day clock. Bring all documents in one visit to avoid delays.

Step 6: Follow up if needed. If the bank delays beyond 15 days without reason, write formally to the branch manager citing the RBI 2025 rule. If still unresolved, escalate to the bank's Grievance Redressal Officer and then to the Banking Ombudsman under the RBI's Integrated Ombudsman Scheme.

What About Joint Bank Accounts After Death in India?

If the account was a joint account with a survivor clause, the surviving account holder simply presents the death certificate and continues operating the account. No claim process is needed.

If the joint account had no survivor clause, the deceased's share is treated as a sole account, and the claim process applies.

What If Multiple Legal Heirs Want to Claim the Same Bank Account After Death?

When several heirs have an equal claim, they can claim jointly or agree in writing that one person collects on behalf of all. Most banks have a consent letter format for this. If one heir refuses to cooperate, the claiming heir may need a succession certificate setting out each person's individual share.

How a Will Helps When Claiming a Bank Account After Death

A Will that clearly names who should receive the balance in each bank account makes the process faster and less likely to cause disputes. When a Will exists, the bank knows exactly who the deceased intended to receive the money.

Without a Will, the bank applies the succession law for the religion of the deceased to determine who can claim. This process takes longer.

AasaanWill's blog on what happens to your bank accounts when you die explains the full picture of what the bank does from the moment it is notified of a death.

Finding Unknown Bank Accounts After Death

Sometimes families do not know a bank account exists. The UDGAM portal, which stands for Unclaimed Deposits Gateway to Access Information, lists unclaimed deposits across multiple banks. Families can search using the deceased's name and other details.

If a bank account remains unclaimed for more than ten years, the balance is transferred to the RBI's Depositor Education and Awareness Fund. Families can still reclaim this by approaching the original bank.

Common Challenges Families Face With Claiming  Bank Balances After Death

Common problems families face include:

• Not knowing the 15-day settlement deadline under RBI 2025 rules

• Not knowing whether a legal heir certificate or succession certificate is needed

• Submitting incomplete documents, which pauses the 15-day clock

• One legal heir refusing to give a no-objection letter, holding up the claim for everyone

• Not being aware of accounts the deceased held with other banks

How AasaanWill Helps

AasaanWill helps families put the right documents in place so bank account claims go through without unnecessary delays. Our team assists with:

• Drafting a Will that names who receives each bank account and financial assets clearly

• Advising on how to align the nominee on each account with the beneficiary named in the Will

• Explaining the legal heir certificate and succession certificate processes in case there is no Will and which applies

• Helping families understand RBI claim timelines and the escalation options available

• Guiding families already dealing with a claim through the process step by step

Writing a Will that names the right beneficiaries for each bank account is one of the simplest things you can do for your family. AasaanWill can help you put that in place today.

Conclusion

When a bank account has no nominee, the balance goes to the legal heirs. The RBI 2025 Directions require banks to settle claims within 15 calendar days of receiving all complete documents. For balances below Rs 15 lakh in commercial banks and Rs 5 lakh in cooperative banks, a legal heir certificate is generally enough. For larger balances or disputed claims, a succession certificate from a civil court is typically needed.

A Will that names who should receive each bank balance makes the process faster and reduces the chance of disagreement among family members. A nominee that matches the Will beneficiary removes most of the complications entirely. AasaanWill can help you write a Will that covers your bank accounts and gives your family a clear path forward.

Frequently Asked Questions

1. What happens to a bank account when the account holder dies in India? 

The bank freezes the account on being notified of the death. If a nominee is named, the balance is released to them. If no nominee is named, the legal heirs must prove their right to the balance through a claim process with documents.

2. Who can claim a bank account after death without a nominee in India? 

The legal heirs of the deceased. For Hindus, Sikhs, Jains, and Buddhists, Class I heirs under the Hindu Succession Act, 1956, come first. If a Will exists, the beneficiaries named in it have the right to claim the balance.

3. What is the RBI rule for claiming a bank account after death? 

The RBI 2025 Directions require banks to settle claims within 15 calendar days of receiving all required documents. If the bank delays, it must pay compensation at the bank rate plus 4 percent per year on the delayed amount.

4. Is a succession certificate required to claim a bank account after death in India? 

For balances up to Rs 15 lakh in commercial banks and Rs 5 lakh in cooperative banks with no nominee, a legal heir certificate is generally enough. For larger balances or disputed claims, a succession certificate from a civil court is typically required.

5. What documents are needed to claim a bank account after death without a nominee? 

Death certificate, bank claim form, identity and relationship proof of the claimant, legal heir certificate or succession certificate, indemnity bond, no-objection letter from other heirs, and the claimant's bank account details.

6. How long does a bank take to settle a claim after death in India? 

Under the RBI 2025 Directions, banks must settle within 15 calendar days of receiving all complete documents. If an investigation is needed, the maximum time is 90 days.

7. What if the bank delays settling the claim after the account holder dies? 

Write formally to the branch manager, citing the 15-day deadline. If unresolved, escalate to the bank's Grievance Redressal Officer and then to the Banking Ombudsman under the RBI's Integrated Ombudsman Scheme.

8. Is a nominee the legal owner of a bank balance after death? 

No. A nominee collects the balance as a trustee on behalf of the legal heirs and must hand it over to the rightful beneficiaries. The nominee is not the ultimate owner of the money.

9. What happens to a joint bank account when one holder dies in India? 

If the account has a survivor clause, the surviving holder continues operating it after submitting the death certificate. If there is no survivor clause, the deceased's share is treated as a sole account, and the claim process applies.

10. What if multiple legal heirs want to claim the same bank account after death? 

They can claim jointly or agree that one person collects on behalf of all with others signing a consent letter. If one heir refuses, the claiming heir may need a succession certificate setting out each person's share.

11. Can a Will help when claiming a bank account after death in India? 

Yes. A Will naming who receives the bank balance helps the bank identify the rightful claimant and can speed up the settlement. Without a Will, the bank applies the applicable succession law to determine who can claim.

12. How do I find a bank account the deceased held that I did not know about? 

You could start by searching the RBI's UDGAM portal for unclaimed deposits using the deceased person's name and identifying details. However, UDGAM does not cover every bank account; it covers unclaimed deposits transferred to the RBI's DEA Fund. Also check the websites of banks you know the deceased dealt with, and contact those banks to enquire about accounts and deposits. Finally, you could also check the deceased's AIS and Form 26AS for reported interest and TDS information, which may help identify banks where interest was earned.

13. What happens if a bank account is unclaimed for more than ten years after death? 

The balance is transferred to the RBI's Depositor Education and Awareness Fund. Families can still reclaim it by approaching the original bank with the standard claim documents.

14. How does a nominee differ from a legal heir for a bank account in India? 

A nominee is registered to collect the balance on the account holder's death. A legal heir is the person who owns the money under Indian succession law. The nominee collects but must hand over to the legal heir.

15. Can AasaanWill help with bank account claims after death? 

Yes. If the deceased did not leave behind a Will, AasaanWill can help you with the process of getting a legal heir or a succession certificate as required by the bank.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. The information presented reflects the law as of the date of publication. For advice on your specific situation, please consult a qualified advocate.

“Make bank account claims easier for your family. Write a Will with AasaanWill today."