When the holder of a bank account or fixed deposit dies, the money does not disappear or get seized by the bank — it passes to the nominee or, failing that, the legal heirs. As with demat and mutual funds, how quick and painless that is comes down to one thing: whether a nominee was registered. Here is the exact claim process, the documents, and the threshold that decides whether you need a court order.
First: is it a joint account?
If the account is held jointly with an “either or survivor” (or former/survivor) mandate, the balance simply continues with the surviving holder on submission of a death certificate — the simplest case, no transmission needed. The rest of this guide covers single-holder accounts and FDs.
With a nominee: the easy path
When a nomination is registered, the balance is payable to the nominee irrespective of the amount. The nominee submits:
- The depositor’s death certificate (attested).
- A claim form from the bank.
- The nominee’s own KYC (PAN/Aadhaar) and bank details.
There is no value threshold for a nominee claim. Remember, though, that a bank nominee — like a demat nominee — is a custodian, not automatically the owner; the money still devolves per the Will or succession law, with the nominee receiving it on behalf of the legal heirs.
Without a nominee: legal heirs and the threshold
With no nominee and no joint holder, the legal heirs must claim. The documents scale with the amount:
| Claim amount (no nominee) | Typical requirement |
|---|---|
| Up to the bank’s simplified-claim limit (commonly around ₹1 lakh; varies by bank) | Death certificate, claim form, KYC, a legal-heirship certificate / affidavit, indemnity and no-objection from other heirs — no court order |
| Above that limit | The above plus a court instrument — a succession certificate, probate of the Will, or letter of administration |
Each bank sets its own simplified-settlement limit under its board-approved policy, so the exact figure differs — ask the branch. The court route adds months and legal cost, which is precisely what a nominee avoids.
Fixed deposits: a few specifics
- The FD is paid out to the claimant; depending on the bank and the deposit terms, it may be paid on maturity or allowed to be closed prematurely, sometimes without the usual premature-withdrawal penalty in death cases.
- Interest typically continues at the contracted rate until the claim is settled.
- The DICGC deposit insurance of ₹5 lakh per bank still protects the deposit — see DICGC cover.
The 15-day rule
The RBI requires banks to settle a deceased-depositor claim within 15 days of receiving complete documents. If a bank drags its feet on a properly-documented nominee claim, that timeline is your lever — escalate to the bank’s grievance cell and, if needed, the RBI Ombudsman.
The lesson, again
Register a nominee on every bank account and FD — it is free and takes minutes — and keep it updated. It turns a court-involved, multi-month ordeal for your family into a 15-day form submission. Pair it with a Will so ownership and the claim point the same way. The same principle runs through your demat and mutual fund holdings.
Frequently Asked Questions
What happens to a bank account when the holder dies?
If the account is joint with an either-or-survivor mandate, the balance continues with the surviving holder on submission of a death certificate. For a single-holder account, the money is paid to the registered nominee, or if there is no nominee, to the legal heirs after they provide the required documents. The money is never forfeited to the bank — it passes to the rightful claimant.
How does a nominee claim a bank account or FD after death?
The nominee submits the depositor's attested death certificate, the bank's claim form, and their own KYC and bank details. With a registered nominee, the balance is payable irrespective of the amount and no court order is needed. The RBI requires the bank to settle the claim within 15 days of receiving complete documents.
What if there is no nominee on the bank account?
The legal heirs must claim with a death certificate, claim form, KYC and a legal-heirship certificate or affidavit. Up to the bank's simplified-settlement limit (commonly around ₹1 lakh, but it varies by bank), this can be done without a court order, usually with an indemnity and no-objection from other heirs. Above that limit, a succession certificate, probate or letter of administration from a court is required.
Is a bank nominee the owner of the money?
No. A bank nominee is a custodian who receives the funds, not automatically the final owner. The money devolves according to the Will or succession law, and the nominee holds it on behalf of the legal heirs. This is why you should register a nominee for a fast claim and also have a Will to decide ownership.
How long does a bank take to settle a deceased depositor's claim?
The RBI mandates settlement within 15 days of receiving all required documents for a properly-documented claim. If the bank delays a complete nominee claim beyond this, you can escalate to its grievance redressal cell and then to the RBI Ombudsman.
Sources: RBI guidelines on settlement of claims of deceased depositors; individual bank deceased-claim settlement policies; DICGC deposit insurance. Simplified-settlement limits vary by bank — confirm with the branch. Current as of 2026.