When a family member passes away, most of the financial work that follows happens in a rush, with incomplete information and no clear starting point. Fixed deposits are a common problem in this situation. They are often discovered late, they rarely have nominees attached, and banks have historically been slow about releasing the money.

The Reserve Bank of India (RBI) addressed this in 2025 with new directions that apply to every bank in India. These rules set timelines, limit the documents banks can demand for smaller amounts, and hold banks accountable if they delay.

This blog explains what families need to do to claim a fixed deposit (FD) when there is no nominee, what documents are required, and what to do when the bank is not cooperating.

Key Highlights

• Legal heirs can claim fixed deposits even when there is no nominee.

• RBI’s 2025 rules require banks to settle complete claims within 15 calendar days.

• For deceased bank deposit claims up to ₹15 lakh, commercial banks may follow a simplified settlement process based on prescribed documents such as a death certificate, indemnity, and legal heir certificate declaration, instead of insisting on a succession certificate in every case.

• For larger amounts or disputed claims, a succession certificate from a civil court may be required.

• Heirs can trace unknown FDs through bank records, Form 26AS, and the RBI’s UDGAM portal.

• A Will that lists financial assets and names an executor can make the claim process easier and reduce delays.

What Is a Nominee and Why Does It Change Everything?

Without a nominee, the bank has no one pre-specified to pay. It has to wait for the legal heirs to come forward and prove they are the rightful claimants. This takes longer and needs more paperwork. But the money does not disappear. AasaanWill's blog on the difference between a nominee and a legal heir explains exactly what each person can and cannot do when it comes to claiming financial assets.

What the RBI Changed in 2025

For years, different banks handled these situations differently. Some asked for a succession certificate even for small amounts. Others had no fixed timeline for settling claims. Families were left waiting, often for months, with no clarity on what to do.

In 2025, the Reserve Bank of India issued new rules applying to all commercial and cooperative banks across India. These rules set a clear process and fixed timelines.

The main points are:

• Banks must settle claims within 15 calendar days of receiving all required documents. If a bank takes longer without good reason, it must pay compensation at Bank Rate plus 4 percent per year on the delayed amount.

• For accounts without a nominee, banks must follow a simplified process for amounts up to Rs 15 lakh in commercial banks and up to Rs 5 lakh in cooperative banks. Within these limits, banks cannot demand a succession certificate or any court order.

• For amounts above these limits, or when heirs are in dispute, a succession certificate from a civil court is required.

• Banks must display their claim process on their websites and allow claims to be filed online.

How Much Is in the FD? That Changes the Process

The amount in the FD determines which route the family takes.

If the FD is below Rs 15 lakh in a commercial bank, the family does not need to go to court. The bank accepts a simpler set of documents:

• A claim form from the bank, available at the branch or on their website

• The original death certificate

• Identity proof of all the heirs who are making the claim, such as a Permanent Account Number (PAN) card and Aadhaar

• An indemnity bond in the bank's format, signed by the claimants

• A no-objection letter from any other legal heirs who are not making the claim themselves

• A legal heir certificate from the local government authority, or an affidavit signed before a notary listing all the legal heirs

If all of these are submitted together, the bank must release the money within 15 days. what a succession certificate is and when you need it explains the court process clearly, including how long it takes and what to expect at each stage.

How to Go About Claiming the FD

Here are the steps you can follow to claim the FD.

Find the FD first. Look through old files for the FD receipt or certificate. Check bank statements for interest credited, which shows that an FD exists. If nothing turns up, call or visit the bank branch directly. Banks can retrieve FD records using the account holder's name, PAN number, and date of birth.

Get several certified copies of the death certificate. Different institutions may each need their own copy, so having extras saves time.

Establish heirship. For smaller amounts, apply for a legal heir certificate from the Tehsildar or revenue authority. It is faster than going to court. For larger amounts, apply to the civil court for a succession certificate.

Collect identity and address proof from all heirs who will either claim or give a no-objection for the claim.

Go to the branch where the FD was opened. Some families go to the nearest branch, which cannot process the claim. The claim must go to the specific branch that holds the FD.

Submit everything together. Incomplete submissions restart the 15-day clock. Call ahead, ask what forms the bank uses, and bring everything in one visit.

Get no-objection letters from other heirs before going. Banks almost always ask for these letters when there is no nominee. Getting these signed in advance saves you a second trip.

After submission, the bank must respond within 15 days. If they ask for more documents, the clock restarts from when those are submitted.

What Happens if the FD Has Already Matured?

If the FD matured before the family got to the bank, the bank would have moved the funds to a savings or holding account at a lower interest rate. The claim process is the same. The heirs can still get it, and no penalty applies when the withdrawal is due to the account holder's death.

When More Than One Heir Is Involved

If several people have an equal claim, they can apply jointly. Or they can agree in writing that one person collects the money on behalf of all, and the others sign a consent letter. Most banks have a standard format for this.

If one heir refuses to cooperate or sign anything, the claimant may need a succession certificate that sets out each person's exact share.

What If the Deceased Left a Will?

A Will makes things cleaner. The executor named in the Will can approach the bank, produce the Will along with the death certificate, and if the Will is not being disputed by anyone, many banks will release the funds without insisting on a full court probate. It is always worth asking the bank what they need before assuming probate is required. AasaanWill's blog on whether your nominee can claim mutual funds without a Will also covers what happens when the nominee and the beneficiary named in the Will are different people, which is a situation many families face.

What If the Bank Still Will Not Move?

Write a formal letter to the Branch Manager quoting the 15-day rule under the RBI 2025 Directions. If 30 days pass and nothing happens, escalate to the bank's Grievance Redressal Officer. If that also does not work, file a complaint with the Banking Ombudsman through the RBI's Integrated Ombudsman Scheme.

The rules are on the family's side. The bank is required to act.

Finding FDs the Family Did Not Know About

This is more common than people expect. Here are a few ways to track down unknown FDs:

• Check income tax records. Form 26AS lists Tax Deducted at Source (TDS) deducted on interest. If there is TDS from a bank, there is likely an FD with that bank

• Write to all banks where the person held accounts and ask for a complete list of deposits

• Search the Unclaimed Deposits Gateway to Access Information (UDGAM) portal managed by the RBI online, which lists unclaimed deposits across many banks in India

If an FD stays unclaimed for more than ten years, it moves to the RBI's Depositor Education and Awareness Fund (DEAF). Families can still reclaim it by approaching the original bank.

How AasaanWill Helps

AasaanWill helps people plan their estate so families are not left searching for FD receipts or waiting months for court certificates. Our team helps with:

• Writing a Will that lists all financial assets including fixed deposits, so heirs know exactly what exists and where to find it

• Explaining the difference between a nominee and a legal heir so families understand their actual rights

• Helping align nominees across bank accounts, FDs, and investments with what the Will says

• Advising on the succession certificate process and when it is needed

• Helping families who are already dealing with an unclaimed FD understand what steps to take

Writing a Will that records financial assets clearly is one of the most practical things any investor can do for the people they love. AasaanWill can help make that happen.

Conclusion

Claiming a fixed deposit without a nominee is not simple, but families who follow the process do get the money released. The RBI 2025 rules have made banks more accountable. For amounts below Rs 15 lakh in commercial banks, a legal heir certificate and indemnity bond are enough. For larger amounts or disputes, a succession certificate from court is needed. Banks must settle within 15 days of getting all the documents.

The best way to protect the family from all of this in advance is to write a Will that lists financial assets clearly and names an executor who can act without delay. AasaanWill can help put that plan together today.

Frequently Asked Questions

1. Can legal heirs claim a fixed deposit without a nominee? 

Yes. When there is no nominee, legal heirs can claim the fixed deposit by providing a death certificate, legal heir certificate or succession certificate, identity proof, and an indemnity bond. For amounts below Rs 15 lakh in commercial banks, a court document is not required.

2. What did the RBI change in 2025 about fixed deposit claims? 

The RBI 2025 Directions require all banks to settle fixed deposit claims within 15 calendar days of receiving complete documents. For no-nominee accounts below Rs 15 lakh, banks must use a simplified process without asking for a succession certificate.

3. What documents are needed to claim a fixed deposit without a nominee?

Death certificate, claim form, identity proof of all legal heirs, legal heir certificate or affidavit, indemnity bond, and a no-objection letter from other heirs. For amounts above Rs 15 lakh, a succession certificate from a civil court is also needed.

4. What is a legal heir certificate and how is it different from a succession certificate? 

A legal heir certificate is issued by the revenue authority or Tehsildar and is faster to obtain. It is enough for smaller claims. A succession certificate is issued by a civil court after a formal process and is required for larger claims or disputed cases.

5. How long does a bank have to settle a fixed deposit claim? 

Under the RBI 2025 Directions, banks must settle within 15 calendar days of receiving all required documents. Delays beyond this require the bank to pay compensation.

6. What if the bank delays the claim beyond 15 days? 

The bank must pay compensation at Bank Rate plus 4 percent per year for the delay. Families can escalate to the bank's Grievance Redressal Officer and then to the Banking Ombudsman if the delay continues.

7. What if multiple legal heirs want to claim the same fixed deposit? 

They can claim jointly or authorise one person to receive the funds on behalf of all. All heirs must sign the indemnity bond and no-objection letter. If there is disagreement, a succession certificate from court is needed.

8. Does having a Will help in claiming a fixed deposit without a nominee? 

Yes. A Will that clearly names the beneficiary makes it easier for the bank to identify the rightful claimant. If the Will is undisputed, many banks will settle without requiring a full court probate.

9. What if the fixed deposit matured before the claim was filed? 

The bank holds the matured amount in a savings or separate account. Heirs can still claim it. No penalty applies when the withdrawal is due to the account holder's death.

10. What if the bank refuses to process the claim? 

Write to the Branch Manager citing the 15-day RBI deadline. If unresolved in 30 days, escalate to the Grievance Redressal Officer. If still unresolved, file a complaint with the Banking Ombudsman.

11. How do heirs find out if the deceased held a fixed deposit? 

Check Form 26AS in income tax records for Tax Deducted at Source on fixed deposit interest. Search the RBI's UDGAM portal for unclaimed deposits. Write to banks where the deceased held accounts asking for a full list of deposits.

12. What happens to a fixed deposit that goes unclaimed for more than ten years? 

It is transferred to the RBI's Depositor Education and Awareness Fund. Families can still reclaim it by contacting the original bank.

13. Can a nominee claim a fixed deposit even if the deceased left a Will naming someone else? 

A nominee receives the fixed deposit amount as a trustee of the legal heirs. If the Will names a different beneficiary, the nominee must hand over the funds to that person. The Will determines who ultimately owns the money.

14.What if the original fixed deposit receipt is lost? 

Banks maintain records of all deposits. The branch can retrieve details using the account holder's name, date of birth, and Permanent Account Number. A declaration about the loss of the original receipt may be needed.

15. Can AasaanWill help families plan ahead to avoid these problems? 

Yes. AasaanWill helps draft a Will that lists all financial assets including fixed deposits, names an executor, and ensures nominees across accounts are aligned with the Will. This reduces the time and paperwork involved when a claim needs to be made.

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.

“Don’t let your family struggle to trace or claim your fixed deposits after you’re gone. Create a clear Will with AasaanWill and make your financial assets easier to manage.”