Axis bank not releasing funds to nominee.

1.File this as complaint/grievance on their website/portal.

2.Issue notice to Branch under CP Act demanding for settlement of claim within a week warning them that you have to file complaint before District Consumer Forum.

3.If the Ombudsman failed to reply, file this as grievance in RBI portal pgportal and also file appeal to Appellate Authority, Dy.Governor RBI, Mumbai.

You can also file a case in Court. 

As per RBI instructions Banks are bound to honour the Nomination unless it is stayed by a Court Order.

You must also understand that a Nominee holds the Funds in Trust and Legal Heirs can claim it.

RBI Master Cicular on Customer Services; Section 19 & 20.

RBI is central bank and guidelines issued by it have statutory force (includes above mentioned circular).

Until or unless there is court order bank should pay to nominee.

If there is NO such Court Order then bank is negligent and deficient.

You could have taken help from CEPD; RBI.

Is it same query:

https://www.lawyersclubindia.com/forum/details.asp?mod_id=147077&offset=1

Thank You Shri Kumar Doab for giving the circular No.

https://www.rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=9008

You are welcome Shri GANDHI MOHAN BHARATI. 

https://rbidocs.rbi.org.in/rdocs/notification/PDFs/72MC010714CS.pdf

Mr Kumar Doab,

I sincerely thank you for sending me the Master Circular of RBI rules . This is very useful for me to understand a lot about 

how to deal with erratic banks like Axis Bank.  You empowered me with the knowledge I needed. Thank you again.

AKS (USA)

I have left a tip for you in your other thread also.

Hope with the help of lawyer chosen by you shall be on the right way ahead.

You are welcome.

Wish you the best.