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Nominee claim of 11 lac in sbi

(Querist) 20 January 2014 This query is : Resolved 
My father died in 15/12/2013 with only legal heirs as myself and my mother.
My father has Savings a/c(2 lac) PPF a/c(6.3 lac) 3FD (3.01 lac); i.e, total 11.31 lac in all cases nominee mentioned with my name. In PPF a/c it also has my photograph.

When I went to Bakultala SBI branch(SBIN0001489) Branch Manager is asking for succession certificate. Is it really required though the nominee mentioned?

India-Kolkata
ajay sethi (Expert) 20 January 2014
if your mother is willing to give NOC bank can make payment to you . it would be necessary for you to execute indemnity bond and furnish sureties as may be necessary . succession certificate would not be necessary
V R SHROFF (Expert) 20 January 2014
agree with Shri Sethi.
Kumar Doab (Expert) 20 January 2014

>> IN case of Deceased Depositor Accounts with the survivor / nominee clause Accounts 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.


Thus BM or even Chairman of the bank also can not insist for any ............................... any bond of indemnity or surety from the survivor(s)/nominee...................................................It can be termed a transgression by BM.


If you wish you can raise the matter to Chairman of the bank.


{However if the claim is genuine and you are also not inclined to dispute with BM and Bank you may submit indemnity, surety. Certainly demand of succession certificate is a transgression by BM.}


If you are being harassed you may record the meetings with BM and keep some witness with you.
The bank is under CCTV surveillance and if chamber of the BM is not under CCTV surveillance let him come to the counters and talk to you and let it be recorded in CCTV with audio footage.

You can also escalate to Vigilance cell of the bank.

BM of the bank should adhere to the guidelines issued by RBI. RBI is central bank and its guidelines have statutory force and NO Bank can violate the guidelines issued by RBI.


These guidelines are available at the website of the RBI, BCSBI, IBA and are to be maintained by the bank on its website and also to be displayed in bank.
Customer has the right to demand a printed version and BM is under obligation of his duty to supply the printed version without any cost to customer.


>> IN case of Deceased Depositor Accounts without the survivor / nominee clause For claims exceeding the Min. Threshold Limit (decided by its board ) as per RBI guidelines Bank may ask for requisite documents.


>> You may go thru:
Master Circular on Customer Service
20. Settlement of claims in respect of deceased depositors –
Simplification of procedure.
Provisions of the Banking Regulation Act, 1949


20.1 Accounts with survivor/nominee clause: 20.1.2............


20.2. Accounts without the survivor / nominee clause

Peyush (Querist) 20 January 2014
Thank you for your support and answers.

They are saying because of the huge amount I/We need succession certificate. All the account has single account holder(my father) and with my nominee, also my mother have no problem to give any NOC

Another question:
1. What will be surety amount?
2. Is it posible, if I claim one by one(say first PPF then SB then FDs)?
ajay sethi (Expert) 20 January 2014
it would be equivalent to amount in FD/ savings account etc . detailed guidelines have been laid down for settlement of claims with nominees . ask your BM for a copy of the same
Guest (Expert) 20 January 2014
Except in a legally disputed case, the bank cannot ask for succession certificate when the depositor had already made nomination. In valid nomination case, there is not bar in claiming the deposits of all accounts simultaneously.
Peyush (Querist) 20 January 2014
I want to claim one by one because: except that I think surety amount will be much larger, which will be difficult for me

So is it possible?

Thank you for your inestimable help.
Peyush (Querist) 20 January 2014
@Ajay Sethi sir, i.e, i have to give 2 witness of 5 lac amount each??
ajay sethi (Expert) 20 January 2014
check guidelines . bank may insist on 2 sureties as amount involved is substantial
ajay sethi (Expert) 20 January 2014
RBI/2005-06/48
RPCD.CO.RF. BC.No.12/07.38.01/2005-06

July 12, 2005

The Chairmen/CEOs
All State and District Central Co-operative Banks

Dear Sir,

Settlement of claims in respect of deceased depositors – Simplification of Procedure

Pursuant to the announcement in the Mid-Term Review of the Annual Policy of the RBI on November 3, 2003, the Committee on Procedure and Performance Audit on Public Services (CPPAPS) was constituted by the RBI with a view to improving the quality of public services to the common person. The Committee in its Report No.3 on 'Banking Operations : Deposit Accounts and Other Facilities Relating to Individuals (Non-Business)', observed that the tortuous procedures, particularly those applicable to the family of a deceased depositor, caused considerable distress to such family members. While the instruction regarding settlement of claims in respect of the deceased depositors had been issued to the banks vide our circulars RPCD.CO.No.RF.BC 09/07.38.01/2000-2001 dated August 22, 2000 and RPCD.CO.No.RF.BC. 59/07.28.01/2000-2001 dated February 27, 2001, the existing dispensation has been reviewed in the light of the recommendations of the CPPAPS and the following instructions are being issued, in supersession of all the earlier instructions on the subject, to facilitate expeditious and hassle-free settlement of claims on the death of a depositor.

2. ACCESS TO BALANCE IN DEPOSIT ACCOUNTS

(A) Accounts with survivor/nominee clause

2.1 As you are aware, in the case of deposit accounts where the depositor had utilized the nomination facility and made a valid nomination or where the account was opened with the survivorship clause ('either or survivor', or 'anyone or survivor', or 'former or survivor' or 'latter or survivor'), the payment of the balance in the deposit account to the survivor(s)/nominee of a deceased deposit account holder represents a valid discharge of the bank's liability provided:

a. the bank has exercised due care and caution in establishing the identity of the survivor(s) / nominee and the fact of death of the account holder, through appropriate documentary evidence;
b. there is no order from the competent court restraining the bank from making the payment from the account of the deceased; and
c. it has been made clear to the survivor(s) / nominee that he would be receiving the payment from the bank as a trustee of the legal heirs of the deceased depositor, i.e., such payment to him shall not affect the right or claim which any person may have against the survivor(s) / nominee to whom the payment is made.
2.2 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 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.

(B) Accounts without the survivor/nominee claus
Guest (Expert) 20 January 2014
No amount of surety is required to be deposited in a nomination case. If any amount of deposit in the shape of surety is asked by the bank that is quite unthical on their part. Sureties can be in personal by some individuals if required to be mentioned in some indemnity bond.
ajay sethi (Expert) 20 January 2014
as per RBI guidelines you dont need to furnish succession certificate or sureties . rely upon above mentioned guidelines
ajay sethi (Expert) 20 January 2014
6. Time limit for settlement of claims

Banks are advised to settle the claims in respect of deceased depositors and release payments to survivor(s) / nominee(s) within a period not exceeding 15 days from the date of receipt of the claim subject to the production of proof of death of the depositor and suitable identification of the claim(s), to the bank's satisfaction.

Banks should report to the Board, at appropriate intervals, on an ongoing basis, the details of the number of claims received pertaining to deceased depositors / locker-hirers / depositors of safe custody article accounts and those pending beyond the stipulated period, giving reasons therefor.
Peyush (Querist) 20 January 2014
"the bank has exercised due care and caution in establishing the identity of the survivor(s) / nominee and the fact of death of the account holder, through appropriate documentary evidence"-

What will be my identity proof? voter id, ration id and heirship certificate from boro chairman/ councilor?
ajay sethi (Expert) 20 January 2014
your PAN card , aadhar card , voter id card etc.
Rajendra K Goyal (Expert) 20 January 2014
Agree, with the expert PS Dhingra ji.

No succession certificate is required where nomination exist irrespective of the amount.

No need of NOC from other legal heirs in case of Nomination.

No need of any surety for account in which nomination exist.

Submit request letter with your identity proof and your Bank details so that the cheque may be issued accordingly.

Branch Manager is unjustified in demanding succession certificate in absence of any counter claim. It is against the instructions laid down by SBI and RBI. He must be accountable for such unjustified action and is not fit for the post.

If the Branch Manager does not cooperate write e-mail and letters to Customer care, chairman, Chief General Manager of your circle, Deputy General Manager of module, Assistant General Manager of Region and wait for positive action.

In case of no action send reminder after 10 days. State Bank people take immediate steps on such complaints.

Peyush (Querist) 20 January 2014
So going back to the first question:
To claim total 11 lac in amount, with valid nominee name in all acount

I only need to show PAN, Aadhar, voter card as my identity proof
No surety for money and succession certificate is needed, though the amount of money is big

Am I missed any thing?
Rajendra K Goyal (Expert) 20 January 2014
May also call on telephone to Asstt. General Manager, Deputy General Manager, General Manager and send them SMS unhappy.
ajay sethi (Expert) 20 January 2014
query is resolved
Peyush (Querist) 20 January 2014
Thank you all; I will let you know what happen in future. Thank you again for your assistance.
Kumar Doab (Expert) 20 January 2014
The RBI guidelines have been provided and it has been clarified from the beginning that Indemnity Bond, Suety, Succession Certificate is not required.RBI guidelines have also been provided.



It is not required even if you claim the payment of all accounts together.

The demand of the BM is a transgression.

Even if the BM obtains legal opinion his demands can not be authenticated by legal cell.

Even if legal cell by any imagination opines in favor of BM it would again be a transgression.


The death certificate of the deceased, Identity proof of the Nominee shall suffice.


You can even open SB a/c of the Nominee(s) in same branch and bank shall have your KYC docs that includes ID proof, address proof, Pan card..................

The claimant(s) { Nominees)} have become eligible for interest till date of payment, and compensation as per internal compensation policy of the bank.

IN this case even the Nodal Officer, and Chairman of the bank shall not deny compensation.

The

Rajendra K Goyal (Expert) 20 January 2014
Agree with the expert Kumar Doab ji.
Peyush (Querist) 20 January 2014
They all time saying it is in nomination act of India(!). As it is more than 10 lac that is why they are asking.

I already have SB a/c in SBI in different branch

Today i got lot of information about this issue and i will act accordingly tomorrow in the bank.

definitely update the status. Thanks to all of you for support and help
Kumar Doab (Expert) 20 January 2014
Prepare a letter in the date of your first visit to the bank.

IN another letter narrate all demands of the BM date wise and mention that your letter was not taken and no policy/rule substantiating the demands of BM was supplied despite repeated visits and claim interest ( which otherwise also bank shall give) and printed version of the policy of the bank and RBI in this case of "Accounts with survivor/nominee clause", and obtain acknowledgment on copy of both letters under seal, signature, date...........diary number etc.................and demand reply by rdg. post only.


The BM has to supply all such policies and rules on the spot.

Let BM reply in writing.

Your visits to the bank are already recorded in CCTV footage with audio..........
The amounts held in the accounts of the deceased are a debt on the bank.
You may also go thru :
Vicarious Libaility,
Rude behaviour
At:
http://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=171

Remain gentle, amiable, and FIRM.
Keep some witness with you.
Learned experts are requested to provide valuable advice on ‘nomination act of India’ cited by querist as quoted by BM.
It shall help everyone.
Rajendra K Goyal (Expert) 20 January 2014
As I have mentioned already State Bank Management is serious in dealing with and solving the complaints of the customers. Approach the higher officials and you will note the result.

Even if any adverse experience please share with us.
Guest (Expert) 20 January 2014
You have got sufficient advice. Better act accordingly instead of stretching the thread unnecessarily.
Peyush (Querist) 20 January 2014
POLICY ON DEPOSITORS RIGHTS SBI:
https://www.sbi.co.in/user.htm?action=viewsection&lang=0&id=0,453,832

RBI ACT:
http://www.rbi.org.in/commonman/Upload/English/Notification/PDFs/64668.pdf

PPF claim form:
https://www.onlinesbi.com/sbi/downloads/PPF/FORM-G_(PPF%20DECEASED%20CLAIM).pdf


Application form for claim-with Nomination: can you provide link??
Dr J C Vashista (Expert) 21 January 2014
Act as advised by the experts, very well explained, I appreciate, close this thread.
Guest (Expert) 21 January 2014
Don't be so lazy. Try to respect others precious time. Do some efforts & labour personally also to find the appropriate application forms. Banks also provide application forms.
Guest (Expert) 21 January 2014
By the way, AS A STUDENT, is it your own problem or trying to earn something from Mr. Pramit Biswas by solving his problem through the experts, as he also claimed to be the only legal heirs as himself and his mother for the same amount of same type of deposit accounts with the same date of death of his father, as you have claimed for yourself?

Peyush (yourself) and Pramit Biswas cannot be the same persons.
Rajendra K Goyal (Expert) 21 January 2014
Application for Payment on nomination, formats are easily available in SBI Branches.
Kumar Doab (Expert) 21 January 2014
Learned experts have provided enough details.

The forms of claim with SBI are available with SBI only.

The forms are not available at Bookstore.
In the first letter as mentioned above demand forms for claims with “"Accounts with survivor/nominee clause". Similarly in 2nd letter and while the Form is given record in writing that the form is supplied only on dated..........................despite representations and demand of forms on dated.....................and dated....................
Transfer the onus on BM that has indulged in transgression.

Hope this shall suffice.
Peyush (Querist) 21 January 2014
Today I went to bank, at first they are acting as previous, but when I showed the rules of RBI: RBI/2005-06/48 and SBI POLICY ON DEPOSITORS RIGHTS: As I gave the the link in previous post; they asked for time; at 4 PM one of the officials called me and asked for documents according the rules. though they asked for witness of 1 lakh, I hope It'll not be a problem.

I thank all of you for your supports and help to me to find the proper path. Thank you.

With that I'm declaring this thread/query is resolved
Guest (Expert) 21 January 2014
Mr. Peyush,

You are welcome. Your query already stand resolved. Hope you are satisfied with the solution provided by the experts.


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