Question: A bank received a claim from the legal heir of a customer who was reported missing on 18th of March 2018. The claim was submitted on 25th of April 2025, requesting settlement of the customer's fixed deposit. Based on the RBI Master Circular on Customer Service in Banks, 2014, how many years had elapsed since the customer was reported missing and had the required statutory period elapsed?
Answer: From 18th of March to 25th of April 2025, 7 years and about 1 month had elapsed. Since more than seven years had passed, the statutory period required for raising the presumption of death under Section 108 of the Indian Evidence Act had been completed. The claim may then be considered in accordance with the applicable legal process and bank's policy.

Supporting evidence:
title: rbi.org.in/72MC010714CS.pdf
quote: As per the provisions of Section 108 of the Indian Evidence Act, presumption of death can be raised only after a lapse of seven years from the date of his/her being reported missing Banks are advised to formulate a policy which would enable them to settle the claims of a missing person after considering the legal opinion and taking into account the facts and circumstances of each case
context: positors / locker hirer / depositor of safe custody articles.

22.1 Settlement of claims in respect of missing persons

Banks are advised to follow the following system in case a claim is received from a nominee / legal heirs for settlement of claim in respect of missing persons :-
The settlement of claims in respect of missing persons would be governed by the provisions of Section 107 / 108 of the Indian Evidence Act, 1872. Section 107 deals with presumption of continuance and Section 108 deals with presumption of death. As per the provisions of Section 108 of the Indian Evidence Act, presumption of death can be raised only after a lapse of seven years from the date of his/her being reported missing. As such, the nominee / legal heirs have to raise an express presumption of death of the subscriber under Section 107/108 of the Indian Evidence Act before a competent court.
If the court presumes that he/she is dead, then the claim in respect of a missing person can be settled on the basis of the same.
Banks are advised to formulate a policy which would enable them to settle the claims of a missing person after considering the legal opinion and taking into account the facts and circumstances of each case. Further, keeping in view the imperative need to avoid inconvenience and undue hardship to the common person, banks are advised that keeping in view their risk management systems, they may fix a threshold limit, up to which claims in respect of missing persons could be settled without insisting on production of any documentation other than (i) FIR and the non-traceable report issued by police authorities and (ii) letter of indemnity.

22.2 Settlement of Claims in respect of Missing Persons in Uttarakhand Disaster

In the aftermath of Uttarakhand Natural Disaster during June 14-20, 2013 the Office of the Registrar General of India, Ministry of Home Affairs, Government of India has devised a procedure for Registration of Death of Missing persons in Natural Calamities affected areas in Uttarakhand vide its circular F.No. 1/2/(Uttarakhand)/2011-VS-CRS dated August 16, 2013 (MHA Circular). A copy of MHA Circular is furnished at Annex VIII for reference. The MHA Circular has devised detailed procedure for registration and issue of 'Death Certificate' of a person reportedly missing since his/her visit to the site of disaster in Uttarakhand in June 2013.
In view of the above, banks are advised to settle the claims in respect of missing persons, covered by MHA Circula