How NRIs Can Claim a Deceased Parent's Bank Accounts and FDs

The account is still there. The money is still in it. And you, the child, cannot touch a rupee of it.

This is one of the hardest calls we take at Belong. A parent has passed away in India. The son or daughter is in Dubai or Toronto, grieving. Now they face an Indian bank that will not simply hand over the balance.

It feels wrong. The money is clearly meant for the family. Yet the bank has rules, and those rules exist for good reason. They also do not bend because you are far away.

So this guide is the practical one. Not the law in the abstract, but the actual steps. How to claim a deceased parent's bank accounts and fixed deposits, and move the money to you.

We will walk through what decides how hard this is, and what the bank needs. Then where the money lands, and how to get it out of India.

The one thing that decides how easy this will be

Before anything, find out how the account was set up. That single fact changes everything that follows.

There are three broad situations, and they are very different in difficulty.

A surviving joint holder.

If you or another family member were a joint holder with survivor rights, the account often passes to the survivor with relatively little friction.

A nominee was named.

If a nominee exists, that person can usually claim the balance from the bank with a simpler process.

Neither.

No joint holder and no nominee is the hard road. Here the bank will want succession documents before releasing anything.

Everything else in this guide flexes around which of these three you are in. So establish it first.

👉 Tip: Before you contact the bank, gather the account details. Find out whether there was a nominee or a joint holder. It decides your entire route.

If there is a joint holder

This is the smoothest path, and many parents set accounts up this way for exactly this reason.

If the account was held jointly with a survivor mandate, the surviving holder generally continues to operate it. The bank updates its records on proof of death.

You will still need to show a death certificate and complete the bank's formalities. But you are not fighting for access; you already have standing on the account.

Worth noting: if you are an NRI and become the surviving holder of a resident account, the account cannot simply stay as it was. It will need to be restructured to reflect your non-resident status. Our note on converting a resident account explains why.

If there is a nominee

A nominee makes the claim simpler, but remember what a nominee actually is.

The nominee can approach the bank, produce the death certificate and identity proof, and claim the balance. The bank pays the nominee because it has a clear person to pay.

But as we have covered before, a nominee usually receives the money as a trustee for the legal heirs. Receiving it is not the same as owning it outright.

So if you are the nominee, you can unlock the account. You then have a duty to ensure the money reaches the rightful heirs, per the will or succession law. Receiving is not the same as keeping.

Our companion guide on wills for Indian expats covers how ownership is finally decided, which sits behind this step.

👉 Tip: Being the nominee gets you the money faster, but does not end the family conversation about who keeps it. Handle both, not just the first.

If there is neither: the harder road

No joint holder and no nominee is where NRIs feel the distance most.

Here the bank cannot simply pay anyone who asks. It needs legal proof of who is entitled to the money before it releases the balance.

Depending on whether a will exists, that proof is usually a succession certificate, a legal heir certificate, or probate. We covered which is which in our guide on those three documents.

For deposits and fixed deposits left without a will, the bank often asks for a succession certificate. It is a court process, so it takes time.

This is the situation where starting early matters most. The account stays frozen throughout, and the timeline is measured in months, not days.

Our note on risks NRIs ignore while planning long-term wealth covers how a missing nomination creates exactly this hardship.

What happens to the fixed deposits specifically

Fixed deposits raise a question people often ask us. Does the FD break, or continue?

Usually the FD is settled as part of the claim, rather than simply carrying on in the deceased's name. The bank pays out the principal and the interest due, following its process for deceased accounts.

Premature settlement on death is generally handled without the usual penalty, but terms vary by bank. Confirm the specific treatment with the bank holding the deposit.

The interest earned up to the parent's death belongs to their final tax picture. Interest that accrues afterwards becomes the heir's income, which matters for your own tax. Our guide on tax on fixed deposits for NRIs covers the ongoing side.

Worth noting: do not assume an inherited FD keeps running untouched in the old name. It is usually claimed and settled, and any reinvestment is a fresh decision in your name.

Where the money actually lands for an NRI

Here is the operational heart of it, and the part generic guides skip.

As an NRI, you generally cannot receive inherited money from a resident parent's account straight into an NRE account. It routes through an NRO account instead.

The NRO account is the correct home for India-sourced money like this. Once the claim is settled, the proceeds sit there in your name.

If you do not already have one, you will need to open an NRO account to receive the funds. Our overview of NRE, NRO and FCNR accounts explains the differences.

From the NRO account, you can then look at moving the money abroad. That is a separate step with its own rules.

👉 Tip: Set up your NRO account early in the process. The claim proceeds need somewhere to land, and sorting it later adds delay.

Getting the money out of India

Repatriating inherited money is where NRIs hit the final layer of paperwork. It is manageable, but it is not automatic.

Money in an NRO account is not freely repatriable the way NRE funds are. There is an annual ceiling, set by the Reserve Bank of India, on NRO repatriation. It caps how much you can send abroad in a financial year.

We are deliberately not stating the figure, because these limits can change. Confirm the current ceiling with the RBI or your bank before planning a large transfer.

To repatriate, banks require specific tax-compliance forms. One is a self-declaration, and the other is a chartered accountant's certificate confirming taxes are settled. These forms were renumbered under the newer rules, so ask your bank for the current versions.

Our guide on filing these remittance forms walks through the process. The wider repatriation guide sets the full context.

Worth noting: the repatriation itself is generally not a fresh tax. But the underlying income may be taxable, and the CA certificate exists to confirm that is sorted first.

Does inheritance get taxed in India?

This worries people, so let us be clear and reassuring where we can.

India does not levy an inheritance or estate tax. Receiving your parent's bank balance or FD is not, by itself, a taxable event for you.

What is taxable is the income the inherited assets generate afterwards. Interest on an inherited FD, once it is yours, is your income going forward.

There may also be loose ends from the parent's own final year of income to settle. And if you later sell inherited assets like property, capital gains can arise.

Our guide on types of taxable income for NRIs covers where inherited income fits. For any tax withheld, our note on claiming excess TDS deducted by banks may help you recover it.

The documents you will broadly need

We will not give a rigid list, because it varies by bank and situation. But the shape is consistent across most claims.

Proof of death.

The death certificate is the starting point for everything.

Proof of who you are.

Your own identity and KYC, including a valid PAN and current address.

Proof of your claim.

The nominee claim form, or the succession documents if there is no nominee.

Account and deposit details.

The account numbers, FD receipts and passbooks you can find. Together they map a slice of the family's net worth.

An NRO account to receive the money.

Opened in your name, ready to take the proceeds.

Because you are abroad, expect notarisation and attestation on several of these. That step is where NRIs lose the most time, so plan for it.

Our documents checklist for NRI tax filing is a useful companion once the money is in your hands.

Two families, two timelines

Concrete helps. Here are two shapes we see, described without numbers.

The first family had a nominee in place, a daughter based in the UAE. She produced the death certificate and her KYC. She claimed the balance into her NRO account, then repatriated within the annual limit. Weeks, not months.

The second family had no nominee and no joint holder. The son in Canada faced a court process for a succession certificate. He coordinated attested documents from abroad before the bank released a single rupee. Months, and real frustration.

Same kind of asset, a parent's deposits, but two completely different experiences. The setup the parent left behind decided the difficulty.

That contrast is the quiet lesson. The kindest estate planning happens long before it is needed.

Decision clarity block

If you were a joint holder, you likely have the smoothest route. You must still restructure the account for your NRI status.

If you are the nominee, you can claim faster, but must still settle who finally owns the money.

If there is neither, expect a court document like a succession certificate, and start it early.

If you are the heir, open an NRO account now, because that is where the money must land.

To move funds abroad, plan for the annual ceiling and the CA-certified remittance forms.

What happens if it drifts

Delay has a cost here, and it is not only emotional.

The account sits frozen while the family postpones the paperwork, and needs that the money could meet go unmet.

Or the claim is started late, the court process crawls, and a simple deposit stays locked for many months.

Or the money is claimed but left sitting idle in the NRO account. Its liquidity goes unused, and its value quietly erodes.

None of this needs bad luck. It needs only the assumption that a grieving family can sort this quickly and casually. It rarely can, and the opportunity cost of the delay is real.

A note for resident Indian readers

If you live in India, you avoid the cross-border attestation and the NRO routing entirely. The claim process itself, though, is the same three-scenario story.

The bigger lesson runs the other way. If you hold accounts and FDs, add nominees to each. Better still, write a will. That is the kindest thing you can do.

A nominee on every account spares your family the court route. A findable list of your assets spares them the search. Our guide on estate planning for NRIs covers how to set this up calmly, in advance.

Frequently asked questions

Can I get my late parent's bank money sent straight to my overseas account?

Not directly. It generally routes through your NRO account first, then abroad, subject to limits and forms.

Do I pay Indian tax just for inheriting the money?

No. India has no inheritance tax. Only the income the assets earn afterwards, and later sales, can be taxable.

What if there is no nominee and no will?

The bank will usually need a succession certificate from a court before releasing deposits. Start it early.

Does the fixed deposit continue in my parent's name?

Usually not. It is generally settled as part of the claim, with principal and due interest paid out.

Do I need to travel to India to do all this?

Often not, but documents will need attestation abroad, and some steps may need a representative in India.

How much can I send abroad afterwards?

Up to an annual ceiling set by the RBI, using the required tax-compliance forms. Confirm the current limit with your bank.

Sources and verification

Bank procedures, repatriation limits, forms and tax rules vary and evolve, and the remittance forms were renumbered under newer rules. We have avoided stating figures, limits or fixed procedures.

Verify the repatriation and tax position with the Reserve Bank of India and the Income Tax Department. For the succession side, a qualified lawyer is the right source, and the specific bank confirms its own document list.

This blends legal, banking and tax territory. For anything beyond understanding the steps, professional help is worth it.

Disclaimer

This article is general information, not legal, tax or banking advice. The stories here are illustrative composites drawn from common patterns, not specific individuals.

Claiming a deceased person's assets is fact-specific and depends on the account setup, the bank, and succession law. Consult a qualified professional before acting, especially across borders.

Delays and errors here are costly in time and money. Plan and act carefully.

Written by Ankur Choudhary, SEBI Registered Investment Advisor and co-founder of Belong, with the Belong research team.

A note on where this fits. Once inherited money reaches your NRO account, the next question is what to do with it. Some NRIs keep it working in dollars through GIFT City rather than leaving it idle. Compare options with the NRI FD rates tool, the GIFT City mutual funds tool, the GIFT City AIF tool and the GIFT Nifty tool. Funds worth reviewing include the DSP Global Equity Fund, the Tata India Dynamic Equity Fund, the Edelweiss Greater China Equity Fund and the Sundaram India Mid Cap Fund. For the equity side, our mutual funds page, GIFT City IPO guide and IPO products page cover the rest.