Key Point What It Means 7-Day Claim Acknowledgement Bank must acknowledge receipt of death-claim documents within 7 days. 30-Day Settlement Rule If papers are in order, claim must be paid within 30 days; else bank owes interest at savings-rate + 2 %. Document List Simplified Banks to display an exact list of acceptable proofs (death certificate, succession cert., indemnity) to avoid repeated visits. No �Insistence� on Legal Heirship If Nominee Exists When a valid nominee is on record, bank should not insist on succession certificate. Why It Matters � Branch Ops / Service Managers � Avoid penalty interest by tracking the 30-day SLA in your CBS. � Audit / Compliance � Add this to death-claim audit checklist; review random samples quarterly. � BFSI Aspirants � Interview question: �How long does a bank have to settle a deceased depositor�s claim?� ? Answer: 30 days. Practical Example Scenario: Mrs Khanna (nominee) submits death certificate & identity proof for her late husband�s ?3 lakh FD. Bank�s Obligation: Acknowledge within 7 days and credit proceeds in ? 30 days. Delay beyond 30 days ? pay savings-rate + 2 % for the delayed period.