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Time of India
4 days ago
- Business
- Time of India
Banks to pay for delayed payouts to kin
MUMBAI: RBI has taken a major step to ensure that grieving families immediately get access to funds and valuables of their deceased relatives. Effective Jan 1, 2026, banks that fail to settle claims related to deceased customers within 15 days of receiving complete documentation must pay up. For delayed payouts on deposits, banks will owe interest at the bank rate plus 4%. For lockers, the cost of delay will be Rs. 5,000 a day. The new framework, laid out in the RBI (Settlement of Claims in respect of Deceased Customers of Banks) Directions, 2025, aims to eliminate the procedural fog that has long complicated such settlements. Instead of discretionary red tape and inconsistent practices, the rules now offer a uniform roadmap for claimants-be they nominees, survivors, or legal heirs. The cleanest route remains through a nomination or survivorship clause. Where these exist, banks are required to release funds or valuables without demanding legal papers like succession certificates or bonds of indemnity. Claimants only need to furnish a death certificate, a claim form, and identification documents. They are, however, treated legally as trustees on behalf of the actual heirs. In the absence of a nominee, banks must adopt a simplified procedure for claims up to Rs 15 lakh. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Onam-eup: Unsold Sofas May Be at Bargain Prices (Prices May Surprise You) Sofas | Search Ads Search Now Undo A legal heir's declaration, no-objection letters from other heirs, and basic documentation are sufficent. For higher amounts, succession certificates or affidavits may be required, along with surety-backed indemnities. Lockers would follow a parallel process. Nominees or joint holders with survivorship rights are granted access upon verification. In other cases, access is granted to legal heirs, subject to documentation and provided no dispute exists. An inventory of contents must be made in the presence of witnesses and bank officials, with formal acknowledgment from claimants. The directions also touch upon corner cases: any payments still being credited to the deceased's account will be returned to the sender or held in an estate account, and term deposits may be closed prematurely without penalty on death. Standardised forms will be available both online and at branches. Banks will also publicise the benefits of nominations. The move has been triggered by the growing size of unclaimed deposits, a large part of which is because banks are reluctant to release the funds of deceased. Stay informed with the latest business news, updates on bank holidays and public holidays .
Time of India
29-07-2025
- Business
- Time of India
RBI caps investment by a bank in AIF scheme at 10%
The Reserve Bank on Tuesday capped contributions by a single regulated entity (RE), including banks and NBFCs, at 10 per cent of the corpus of an Alternative Investment Fund (AIF) scheme. Also, collective contribution by all REs in any AIF Scheme should not be more than 20 per cent of the corpus of that scheme, said the Reserve Bank of India (Investment in AIF) Directions, 2025. Explore courses from Top Institutes in Please select course: Select a Course Category Healthcare Data Science Finance PGDM MCA Data Science others CXO Cybersecurity Technology Degree Digital Marketing Public Policy Project Management healthcare Data Analytics Others Product Management Design Thinking MBA Operations Management Artificial Intelligence Leadership Management Skills you'll gain: Financial Analysis in Healthcare Financial Management & Investing Strategic Management in Healthcare Process Design & Analysis Duration: 12 Weeks Indian School of Business Certificate Program in Healthcare Management Starts on Jun 13, 2024 Get Details REs refer to banks, NBFCs and All-India Financial Institutions. The RBI had issued guidelines in December 2023 and later in March 2024 prescribing the regulatory guidelines in respect of investment by the REs of the Reserve Bank in AIFs. The guidelines have been reviewed, inter alia, taking into account industry feedback as well as the regulations issued by the Securities and Exchange Board of India (Sebi) relating to specific due diligence of investors and investments of AIFs, the RBI said in a circular on Tuesday. Live Events "No RE shall individually contribute more than 10 per cent of the corpus of an AIF Scheme," the circular said. Collective contribution by all REs in any AIF Scheme shall not be more than 20 per cent of the corpus of that scheme. "If a RE contributes more than five per cent of the corpus of an AIF Scheme, which also has downstream investment in a debtor company of the RE, then the RE shall be required to make 100 per cent provision to the extent of its proportionate investment in the debtor company through the AIF Scheme, subject to a maximum of the direct loan and/ or investment exposure of the RE to the debtor company," it said. The circular also said the RBI may, in consultation with the government, exempt certain AIFs from the scope of the existing circulars and the revised Directions. PTI
News18
29-07-2025
- Business
- News18
RBI caps investment by a bank in AIF scheme at 10 pc
Agency: Mumbai, Jul 29 (PTI) The Reserve Bank on Tuesday capped contributions by a single regulated entity (RE), including banks and NBFCs, at 10 per cent of the corpus of an Alternative Investment Fund (AIF) scheme. Also, collective contribution by all REs in any AIF Scheme should not be more than 20 per cent of the corpus of that scheme, said the Reserve Bank of India (Investment in AIF) Directions, 2025. REs refer to banks, NBFCs and All-India Financial Institutions. The RBI had issued guidelines in December 2023 and later in March 2024 prescribing the regulatory guidelines in respect of investment by the REs of the Reserve Bank in AIFs. The guidelines have been reviewed, inter alia, taking into account industry feedback as well as the regulations issued by the Securities and Exchange Board of India (Sebi) relating to specific due diligence of investors and investments of AIFs, the RBI said in a circular on Tuesday. 'No RE shall individually contribute more than 10 per cent of the corpus of an AIF Scheme," the circular said. Collective contribution by all REs in any AIF Scheme shall not be more than 20 per cent of the corpus of that scheme. 'If a RE contributes more than five per cent of the corpus of an AIF Scheme, which also has downstream investment in a debtor company of the RE, then the RE shall be required to make 100 per cent provision to the extent of its proportionate investment in the debtor company through the AIF Scheme, subject to a maximum of the direct loan and/ or investment exposure of the RE to the debtor company," it said. The circular also said the RBI may, in consultation with the government, exempt certain AIFs from the scope of the existing circulars and the revised Directions. PTI NKD NKD MR (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: July 29, 2025, 19:00 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Canada News.Net
23-06-2025
- Business
- Canada News.Net
RBIs project financing norms will have negligible impact on banks, NBFCs: Report
New Delhi [India], June 21 (ANI): The relaxation in project financing norms by the Reserve Bank of India (RBI) to banks and NBFCs will have a negligible impact on the profitability on their profitability and balance sheet, according to a report by Motilal Oswal. 'We believe the impact of the revised norms on bank/NBFC profitability will be negligible, as the existing book remains unaffected,' the report added. However, the report added, 'For new project loans, any incremental provisioning cost is likely to be passed on to borrowers, especially in a declining rate environment, through yield adjustments.' The report added that RBI's final project finance guidelines are a positive for banks and NBFCs, especially when compared to the stricter 2024 draft. The apex bank on Wednesday issued the final Reserve Bank of India (Project Finance) Directions, 2025, which lays down the comprehensive framework for income recognition, asset classification, and provisioning norms for project loans under implementation. The most notable relief came from the significantly eased provisioning requirements, which were cut to just 1 per cent during construction compared to 5 per cent proposed earlier and as low as 0.4 per cent post Date of Commencement of Commercial Operations (DCCO). These new guidelines will come into effect from October 1 current year. The draft guidelines proposed an enabling framework for the regulated entities (REs) for financing project loans, while addressing the underlying risks. RBI said that it received feedback from nearly 70 entities, including banks, NBFCs, industry bodies, academicians, law firms, individuals, and the Central Government. As per to new rules, the RBI introduced a principle-based regime for stress resolution in project finance exposures, applicable across all regulated entities (REs), ensuring a harmonised approach. The report stated that the easing norms reduce capital drag while still maintaining prudence. 'Overall, the final norms strike a balanced approach, enabling continued flow of project finance with minimal impact on the profitability or balance sheet strength of lenders,' the report further added. (ANI)
India Gazette
21-06-2025
- Business
- India Gazette
RBIs project financing norms will have negligible impact on banks, NBFCs: Report
New Delhi [India], June 21 (ANI): The relaxation in project financing norms by the Reserve Bank of India (RBI) to banks and NBFCs will have a negligible impact on the profitability on their profitability and balance sheet, according to a report by Motilal Oswal. 'We believe the impact of the revised norms on bank/NBFC profitability will be negligible, as the existing book remains unaffected,' the report added. However, the report added, 'For new project loans, any incremental provisioning cost is likely to be passed on to borrowers, especially in a declining rate environment, through yield adjustments.' The report added that RBI's final project finance guidelines are a positive for banks and NBFCs, especially when compared to the stricter 2024 draft. The apex bank on Wednesday issued the final Reserve Bank of India (Project Finance) Directions, 2025, which lays down the comprehensive framework for income recognition, asset classification, and provisioning norms for project loans under implementation. The most notable relief came from the significantly eased provisioning requirements, which were cut to just 1 per cent during construction compared to 5 per cent proposed earlier and as low as 0.4 per cent post Date of Commencement of Commercial Operations (DCCO). These new guidelines will come into effect from October 1 current year. The draft guidelines proposed an enabling framework for the regulated entities (REs) for financing project loans, while addressing the underlying risks. RBI said that it received feedback from nearly 70 entities, including banks, NBFCs, industry bodies, academicians, law firms, individuals, and the Central Government. As per to new rules, the RBI introduced a principle-based regime for stress resolution in project finance exposures, applicable across all regulated entities (REs), ensuring a harmonised approach. The report stated that the easing norms reduce capital drag while still maintaining prudence. 'Overall, the final norms strike a balanced approach, enabling continued flow of project finance with minimal impact on the profitability or balance sheet strength of lenders,' the report further added. (ANI)
