The death of a family member is emotionally difficult, and handling financial matters during this time can be confusing. One of the most important tasks is closing or settling the bank account of the deceased. In India, banks follow specific RBI guidelines for closing accounts after death.
This article explains how to close a bank account after the death of a family member, required documents, rules for joint accounts, and common mistakes to avoid.
Is It Mandatory to Close a Bank Account After Death?
Yes. After the death of an account holder:
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The bank account cannot continue in the deceased person’s name
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The account must be closed or settled by transferring funds to:
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Nominee, or
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Legal heirs, or
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Surviving joint account holder
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Step-by-Step Process to Close a Bank Account After Death
Step 1: Inform the Bank Immediately
Visit the bank branch where the account is held and inform them about the death. This prevents:
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Wrongful withdrawals
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Continued credit of pension or government benefits
Step 2: Submit Death Certificate
Provide:
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Original death certificate for verification
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One or more self-attested photocopies
The bank will update its records and mark the account as “deceased”.
Step 3: Check Account Type
1️⃣ Single Account
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Account is frozen immediately
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Funds released only to nominee or legal heirs
2️⃣ Joint Account
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Either or Survivor: Surviving holder can operate and close account
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Jointly Operated: Account frozen; legal process required
Step 4: Submit Required Documents
Documents usually required:
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Death certificate
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KYC documents of claimant (Aadhaar, PAN)
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Bank account closure form / claim form
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Nominee details (if applicable)
Additional documents (if no nominee):
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Legal heir certificate or succession certificate
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Family member affidavit or indemnity bond (as required by bank)
Step 5: Claim the Balance Amount
The bank will:
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Transfer funds to nominee’s account, or
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Distribute funds among legal heirs as per law
After settlement, the bank officially closes the account.
How Long Does It Take to Close the Account?
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With nominee: 7–15 working days
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Without nominee: 15–45 days (depending on legal documents)
Special Cases
Pension or Salary Account
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Pension credited after death is recoverable
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Inform employer / pension authority immediately
Fixed Deposits & Lockers
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FD settlement follows same nominee/legal heir rules
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Locker access requires separate application and inventory process
Common Mistakes to Avoid
❌ Delaying intimation to bank
❌ Withdrawing money after death without informing bank
❌ Assuming nominee is the legal owner
❌ Ignoring joint account rules
Frequently Asked Questions (FAQs)
Can a nominee withdraw all money?
A nominee can receive the amount, but legal heirs have ownership rights.
Can the bank refuse to close the account?
No, if valid documents are provided.
Is a succession certificate mandatory?
Only when there is no nominee and claim amount is high.
Why Closing the Account Properly Is Important
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Avoids legal disputes
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Prevents fraud allegations
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Ensures compliance with RBI norms
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Protects surviving family members
Conclusion
Closing a bank account after the death of a family member is a legal and necessary process. By informing the bank early and submitting the correct documents, families can avoid unnecessary stress, delays, and legal complications.
Also read What Happens If Death of a Bank Account Holder Is Not Informed to the Bank? (India)
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