How to get back the fixed deposit...
ksr prasad
(Querist) 30 March 2014
This query is : Resolved
The head of a family(father) took a fixed deposit on his name some time ago for Rs 5 lakhs in a nationalised bank with both major sons as nominees. He has passed away about 6 months ago before that he executed a ‘will’ distributing his cash & property among his wife and 2 sons. When the sons approached the bank with his death certificate, ID and a copy of the ‘will’, the bank manager refused to release the deposit amount on the ground of multiple nominees which is invalid as per bank rules. He is insisting on producing a family certificate or an indemnity bond indicating all the legal heirs so that the amount can be distributed equally among his wife and 2 sons. Obviously, the bank did not guide the depositor correctly on the nominee issue at the time of first deposit. But the depositor’s intentions are very clear and he wanted the deposit proceeds to go in his sons’ favour only and never took his wife’s name in this particular deposit. The wife and her family are trying to exploit the nominee problem and she happens to be step mother. The problem is that if she takes away one third portion of the deposit amount, the sons don’t have enough money to honour other commitments made in the ‘will’ and also another partition agreement reached between the them. Kindly advise how to go about as the sons are in tremendous pressure from the other party to settle the issue. What are the legal and other measures to sort it out.
T. Kalaiselvan, Advocate
(Expert) 30 March 2014
The bankers are right in instructing you to furnish an indemnity bond from all the legal heirs and get the amount collectively because even if the nomination is held as valid, it is just a trust , wherein the nominee has to inturn distribute the amount to all the legal heirs of the deceased.
Rajendra K Goyal
(Expert) 30 March 2014
The nomination was given to the Bankers and the same was accepted by them. Bankers are wrong to deny the payment on the the pretext of multiple nomination. It should be paid on receiving claim form signed by both the nominees. Bankers have no risk in the payment.
There is no counter claim. If any claim from the heirs they can settle it outside or through legal path.
If the Bank does not agree to pay, make complaint to higher officials and if no result approach consumer forum after serving legal notice.
ajay sethi
(Expert) 30 March 2014
in your case you have stated that your father left a will wherein he has mentioned that property should go to wife and 2 sons . even if in nomination forms father has mentioned that bank fixed deposits should go only to 2 sons the will is last wish of testator .
it is in your interest to share the amount lying in fixed deposit with your step mother . better to avoid long legal battle ahead .
Kumar Doab
(Expert) 30 March 2014
Mr. Goyal is right. The stance of the BM is transgression.
There is no need to show or produce the copy of WILL. Nomination in a/c is sufficient.
Submit a letter to BM narrating all representation made so far with dates and demands of the BM and demand to release the funds at once with interest for the period of delay. If possible record (audio/visual). The evidence shall entitle you for compensation from Bank. Take the help of elders in family, competent and experienced well wishers. If required escalate to Circle head, Chairman, MD, Nodal Officer.
The guidelines are issued by the RBI which is to be displayed and also maintained by bank in its Branch. A printed version is to be supplied to claimant/customer on demand.RBI is central bank and its guidelines have statutory force.These guidelines are advocated by BCSBI, IBA also.
There are many threads on similar queries and eventually the querists have been able to resolve.
RBI:
Master Circular on Customer Service
20.1 Accounts with survivor/nominee clause
20.1.2. It may be noted that since payment made 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 should 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.
ksr prasad
(Querist) 03 April 2014
Thanks a lot to all the legal experts who have given their valuable opinions.
