Module: General Practice
Q84: According to the RBI Master Direction on Customer Service, what is the minimum threshold limit up to which banks are advised to settle claims in respect of deceased depositors without insisting on legal representation (like a Succession Certificate) in the absence of a nominee?
✅ Correct Answer: C
Correct Answer: C. Rupees 15 Lakh.
Concept: Threshold for Simplified Settlement.
The Rule: The RBI has advised banks to adopt a "Simplified Settlement Procedure" for claims where there is no nominee or Will.
The Limit: Under the RBI (Settlement of Claims in respect of Deceased Customers) Directions, 2025, the minimum threshold for simplified settlement (without legal representation) has been raised to Rupees 15 Lakh for Commercial Banks (and ₹5 Lakh for Co-operative Banks). The previous threshold was ₹5 Lakh.
Concept: Threshold for Simplified Settlement.
The Rule: The RBI has advised banks to adopt a "Simplified Settlement Procedure" for claims where there is no nominee or Will.
The Limit: Under the RBI (Settlement of Claims in respect of Deceased Customers) Directions, 2025, the minimum threshold for simplified settlement (without legal representation) has been raised to Rupees 15 Lakh for Commercial Banks (and ₹5 Lakh for Co-operative Banks). The previous threshold was ₹5 Lakh.