Deceased deposit

After the death of your father , your mother, sisters ( if you have got) are all entittle for the equal share in the deposit.  File a probate and succession certificate in the court and get the order to withdraw the amount from the bank.

Mr. Rajeev ( Rajoo) has given valuable advice.Kindly follow it.

The regulators have framed policies to provide easy disbursements to legal heir of deceased depositors. The language of individual bank policy is more or less same e.g.

“In the absence of nomination and when there are no disputes among the claimants, the Bank will pay the amount outstanding in the account of deceased person against joint application and indemnity by all legal heirs or the person mandated by the legal heirs to receive the payment on their behalf without insisting on legal documents up to the limit approved by the bank’s board. This is to ensure that the depositors are not put to hardship on account of delays in completing legal formalities.”

You may log on to the Bank website and check the rules applicable to Deceased Depositor FD a/c and applicable to a/c without nomination, and cite these rules to BM.

Complete the formalities as explained in rules by RBI, BCSBI, IBA and collect your payment. If none of the claimant has raised any dispute BM shall also adhere to the policy. If you are not satisfied you can escalate to Nodal officer, Chairman of the bank by even email for relief.
 

RBI:

2. ACCESS TO BALANCE IN DEPOSIT ACCOUNTS

“(B) Accounts without the survivor/nominee clause

2.3 In case where the deceased depositorhad not made any nomination or for

the accounts other than those styled as "either or survivor" (such as single or

jointly operated accounts), banks are advised to adopt a simplified procedure for

repayment to legal heir(s) of the depositorkeeping in view the imperative need to

avoid inconvenience and undue hardship to the common person.  In this context,

banks may, keeping in view their risk management systems,fix a minimum

threshold limit, for the balance in the account of the deceased depositors, up to

which claims in respect of the deceased depositors could be settled without

insisting on production of any documentation other than a letter of indemnity.”


BCSBI:

2. ACCESS TO BALANCE IN DEPOSIT ACCOUNTS

b. Accounts without the survivor/nominee clause

In case where the deceased depositor had not made any nomination or for the accounts

than those styled as

"either or survivor" (such as single or jointly operated accounts), wewill adopt a simplified

procedure for repayment to

legal heir(s) of the depositor keeping in viewthe imperativeneed to avoid inconvenience

undue hardship to the common person.

Keeping in view our risk management systems, we will fix a minimum threshold limit, for

balance in the account of the deceased

depositors, up to which claims in respect ofthe deceased depositors could be settled wit

insisting on production of

any documentation other than a letter of indemnity
 

IBA:

8.7     Settlement of claims in respect of  Deceased Account holders

8.7.1   We will follow a simplified procedure for settlement of accounts of  deceased accounts holders.

           b.    Accounts without the survivor/nominee clause

In case where the deceased depositor had not made any nomination or for the accounts other than those styled as

"either or survivor" (such as single or jointly operated accounts), we will adopt a simplified procedure for repayment to

legal heir(s) of the depositor keeping in view the imperative need to avoid inconvenience and undue hardship to the common person.

Keeping in view our risk management systems, we will fix a minimum threshold limit, for the balance in the account of the deceased

depositors, up to which claims in respect of the deceased depositors could be settled without insisting on production of

any documentation other than a letter of indemnity.

RBI:

2 (A)

2.2 It may be noted that since paymentmade to the survivor(s) / nominee,
subject to the foregoing conditions, would constitute a full discharge of the bank's
liability, insistence on production of legal representation is superfluous and
unwarranted and only serves to cause entirely avoidable inconvenience to the
survivor(s) / nominee and would, therefore, invite serious supervisory
disapproval. In such case, therefore, while making payment to the survivor(s) /
nominee of the deceased depositor, the banks are advised to desist from
insisting on production of succession certificate, letter of administration or
probate, etc., or obtain any bond of  indemnity or surety from the
survivor(s)/nominee, irrespective of the amount standing to  the credit of the
deceased account holder

0

Link:

https://www.lawyersclubindia.com/forum/Bank-fixed-deposit-62349.asp#.UBlO-iIWrts

0

 Link:

https://www.lawyersclubindia.com/forum/Bank-deposit-61984.asp#.UAlKWSIWrts

https://www.lawyersclubindia.com/forum/Death-claim-for-bank-fd-61980.asp

Thanks for the prompt responses. However, one other question; my father was an ex employee and is the same rule applicable for the ex employees?al due to the fact that my mother is drawing a family pension from same bank?

Regards,

Nagarajan

The rules do not seem to differentiate between ex-employee and general public. The rules are for customers, deceased depositors in this case.

If your father was an ex -employee, his family history should be known to employer. Employers do collect nomination form/details from employees on PF, pension, gratuity forms.

On the strength of nomination registered by your father your mother is drawing pension.

As your mother is drawing pension from the same bank her credentials are also known to the bank and it’s BM.

BM can transfer the funds of FD to the a/c of your mother. Or your mother can open an new SB a/c and instruct the bank to transfer funds in new a/c.

If the legal heir or claimant has not raised any dispute BM should be satisfied with the indemnity signed by the claimant, as per rules.

Thanks again for the response. Its a genuine case, at least I got some good information to talk to the Bank Officials.

Regards

Nagarajan

Hi,

I spoke to the bank officials. They say that succession certificate will not suffice if there is no nomination and there are no set of rules for ex employees. Also, the officials lost few documents that we submiited earlier and they are very rude when we ask any questions. Shall we directly launch a file a case.

Regards

Nagarajan

Whosoever, whatsoever in the Bank can not be rude with customer. You may go thru the attachment.

Whosoever, whatsoever in the Bank can not comment that he/she has lost the documents supplied by the customer, leave apart loosing the documents.

Did you submit the documents under acknowledgment? One should always go to any establishment with a letter and list of enclosures mentioned in the letter and obtain acknowledgment.

All rules and guidelines set by RBI, BCSBI,  IBA must be available at the bank website.

You have the option of lodging your complaint/grievance and escalating the matter complicated by BM at Citizen Charter, Grievance redressal system, Nodal Officer, Chairman of the bank.

You may try by quoting RBI:2 (A),2.2

What is the minimum threshold limit, fixed by Central Bank of India?

Hi,

I got the Surities to submit with the bank. However, one of my Guarantor is showing his fixed deposit as a surity, will that suffiace and will there be any obligation for the Guarantor that he cannot withdraw his Fixed Deposit. Please let me know.

Regards,

Rajan

It is felt that bank has not communicated the rule on:

"What is the minimum threshold limit, fixed by Central Bank of India?"

and/or you have not obtained the rule.

It is also felt that bank is asking for individuals of net worth to support you and that bank can not mark any lien on the FD of the surety.

However you may show the documents provided by the BM of the bank to a competent and experienced lawyer.

Once the documents are signed it shall tantamount to acceptance of the terms dictated by the bank.

Hi all,

Thank you for your help. The amount is finally sanctioned and the amount will be paid in a week. I just wanted to know if there is any such clause where in the dispersed amount is kept on hold for certian amount of time, may be couple of years or the claimaints are free to withdraw and transfer it to various banks.

Awaiting your reply.

Regards,

Nagarajan

In your case claimants money is being paid to claimants and claimants have staked their legitimate claim and have complied to the norms.

It is felt that once the payment is made the claimants shall become owner of the accounts and funds in thier accounts and should be free to utilise the funds in manner as pleased.

If the BM or bank makes a comment on keepng the funds in the a/c for a specified period you may ask the bank in writing under acknowledgment to supply a reply { by letter under original seal and signature by hand on letterhead, thru redg. post only} and certified copy of the law of the land, policy, rule, etc vide which bank is inclined to levy such a condition.

If there is any such rule bank/BM should not hesitate in replying.

Transact in writing only and that too under acknowledgment.If BM does not reply escalale to Nodal officer,Chairman.