SBI VRS Denied After Death: Does Your Family Get ₹9.48L?

If your VRS application is already approved but you die before the official retirement date, your family still has a legal right to receive the full VRS payout. A High Court just confirmed this.

Here's what happened: An SBI employee's VRS application was formally accepted by the bank, but he passed away about one month before the scheduled retirement date.. SBI refused to pay the ₹9.48 lakh VRS benefit to his family, arguing that he did not survive until the actual retirement cut-off date.. The Telangana High Court ruled in favour of the family, holding that once a VRS application is accepted, the benefit becomes a vested right that passes to legal heirs..

What you should do: Check your VRS or retirement acceptance letter — once approved in writing, the benefit is legally yours; keep a copy in a safe place accessible to family.. Nominate a legal heir formally in your employer's HR records and update your nomination in all linked bank accounts and provident fund accounts.. If your employer denies a rightful retirement or VRS claim after death, file a representation with the HR department citing the vested-rights principle, and consult a labour lawyer if rejected..

Pro tip: Under Indian service law, an accepted VRS offer creates a binding contract — your employer cannot unilaterally withdraw benefits just because you died before the effective date. Document every approval in writing.