Most families are sent for a succession certificate they do not need. Banks maintain a threshold up to which they settle on an affidavit and indemnity, and the first job is to find out what that threshold is in writing.
Three situations, three different answers. Establish which one you are in before doing anything else, because the work involved differs by an order of magnitude.
1. There is a nominee
Section 45ZA of the Banking Regulation Act 1949 allows the bank to pay the nominee and be discharged. In practice the nominee produces the death certificate, identification and the claim form, and the bank releases the balance.
This is the fastest route, and it settles nothing about entitlement. The nominee receives; the heirs remain entitled. That distinction is set out in the nominee page and it matters because nominees frequently assume the payment made the money theirs.
2. The account is joint
Where the mandate is either or survivor, anyone or survivor, or former or survivor, the survivor can generally operate or close the account on production of the death certificate. Again this determines operation, not beneficial ownership, and the deceased's share still forms part of the estate.
Where the mandate is jointly, the account does not survive in the same way and the claim is dealt with as in the next section.
3. No nominee, no survivor — the part that goes wrong
This is where families are routinely told to obtain a succession certificate, and where that advice is frequently unnecessary.
Banks are expected to have a Board-approved policy setting a threshold up to which a deceased depositor's claim is settled without requiring legal representation — typically on the basis of a claim form, the death certificate, identification, an affidavit of the heirs, a letter of indemnity, and often a surety or a no-objection from the other heirs. Above that threshold the bank will ask for a succession certificate, probate or letters of administration.
Reserve Bank guidance also directs that claims be settled within a short period of receipt of complete papers, and discourages banks from insisting on legal representation as a matter of routine for small balances.
Two things follow, and they are the whole of the practical advice on this page:
- Ask for the threshold and the document list in writing. Not at the counter, and not by telephone. A written request produces a written policy answer, and the answer is frequently more generous than the counter's first position.
- Weigh the court fee before petitioning. A succession certificate carries an ad valorem court fee — a percentage of the value of the assets covered. On a modest balance the fee, the advocate's costs and a year of delay can approach the amount you are trying to recover. The arithmetic is set out in the succession certificate page.
When a succession certificate genuinely is required
Where the balance is above the bank's threshold, where the heirs do not agree, where an heir cannot be traced or will not sign, or where a will exists but its effect on the account is contested. In those cases the bank's insistence is not obstruction — paying the wrong person exposes it, and the grant is what protects it.
What to prepare
- Death certificate, in original with copies.
- The bank's own claim form for a deceased depositor's account — ask for it by that name.
- Proof of relationship for each heir, and identity and address proof.
- The passbook, statement or deposit receipt, and the account number.
- An affidavit of the heirs and a letter of indemnity in the bank's format, where the claim is below the threshold.
- No-objection or a joint claim from the heirs who are not receiving.
If the branch will not move
Escalate in writing to the bank's nodal grievance officer, asking for the Board-approved threshold applicable to the claim, the clause relied on for the requirement imposed, and a decision within the bank's own service timeline. Where that fails, the complaint route is against the bank — the RBI Integrated Ombudsman scheme, or a CPGRAMS complaint routed through the Department of Financial Services — before, not after, incurring a court fee.
A dormant or inoperative account, or one whose balance has been transferred to the Depositor Education and Awareness Fund, follows the same claim route with an additional step, and the bank remains liable to pay the claimant.
Questions people actually ask
Can I withdraw money from a deceased person's bank account?
Not by operating the account. The claim must be made to the bank as a deceased depositor's claim. Where there is a nominee, the bank may pay the nominee under Section 45ZA of the Banking Regulation Act 1949. Where the account is held either or survivor, the survivor can generally operate it. Otherwise the heirs must claim, within or above the bank's threshold.
Do I need a succession certificate to claim a bank account?
Often not. Banks are expected to maintain a Board-approved threshold up to which claims are settled on a claim form, death certificate, affidavit and letter of indemnity without legal representation. A succession certificate becomes necessary above that threshold, or where the heirs disagree or an heir will not participate.
How long should a bank take to settle a deceased depositor's claim?
Reserve Bank guidance directs settlement within a short period of receipt of complete papers and discourages routine insistence on legal representation for smaller balances. If the bank exceeds its own service timeline, escalate in writing to the nodal grievance officer.
What if I am the nominee — is the money mine?
No. The nomination allows the bank to pay you and be discharged. It does not make you the owner. You hold the money for whoever is entitled under the will or under succession law, and spending it exposes you to a claim from the other heirs.
What can I do if the branch refuses to release the money?
Escalate in writing to the bank's nodal grievance officer, asking for the applicable Board-approved threshold and the specific requirement relied on. If that fails, complain against the bank through the RBI Integrated Ombudsman scheme or CPGRAMS via the Department of Financial Services — before incurring an ad valorem court fee.
Most succession matters are lost to the wrong document rather than the wrong argument — a year spent on a certificate that was never going to be accepted. If you are not sure which grant your situation needs, that is the question worth settling first.