Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q8: Under the "Simplified Procedure" for settling claims without a nomination, up to what amount can a Commercial Bank settle a claim without insisting on a Succession Certificate?

A
Rupees 2 Lakh.
B
Rupees 5 Lakh.
C
Rupees 10 Lakh.
D
Rupees 15 Lakh.
✅ Correct Answer: D
Correct Answer: D Concept: Simplified Settlement Thresholds (2025). To reduce legal hardship, RBI standardized the thresholds for settling claims based on a simple Indemnity Bond (without court orders): Commercial Banks: Rupees 15 Lakh.
Co-operative Banks: Rupees 5 Lakh.
Banks may set a higher limit at their discretion, but they cannot set a lower one for this simplified process.