Responsibility of bank towards withdrawal from ATM

Rajesh Kumar Yadav (Querist) 28 June 2013 This query is : Resolved
What are the duties of bank while money withdrawn from ATM by nominee or on behalf of nominee after death of A/c holder ?
Is nominee liable for penalty ?

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adv. rajeev ( rajoo ) (Expert) 28 June 2013
Bank is no way concerned to the amount withdrawn by nominee after the death of the account holder, how come bank comes to know such and such person is withdrawn the amount from the bank
Duty of the nominee is to distribute the amount of the deceased to his/her legal heirs, but not to take entire benefits. If any legal heirs of the deceased then can claim their share.

malipeddi jaggarao (Expert) 28 June 2013
Agreed with expert Rajeev. It is the duty of the legal heirs to inform the Bank about the death of the account holder. In such case the Bank will block the ATM card. The nominee can withdraw the entire money at one stake from the branch only. Unless the legal heirs get a court order, the bank is discharged if it pays the amount to the nominee. It is the duty of the nominee to pass on the amount to the legal heirs. You have remedy against nominee, not against bank in the given circumstances.

Devajyoti Barman (Expert) 28 June 2013
File case for criminal breach of trust against the person withdrawing money. The Bank is no way connected with this.

ajay sethi (Expert) 28 June 2013
agree with experts

Guest (Expert) 28 June 2013
No amount can be withdrawn through ATM without use of password of the Debit/Credit Card holder. If the deceased has already compromised with his password by sharing that with the nominee or the nominee has stolen that, the bank cannot be held responsible for any withdrawal from ATM. Bank can be held liable only if some technical snag in operation of the ATM is reported and proved.

Rajendra K Goyal (Expert) 28 June 2013
Fully agree with the views of the experts. Bank can not be held responsible for the act of account holder who compromised the ATM card and the password. It was the duty of the nominee / legal heirs to get the card block soon after the death of the account holder.

Sudhir Kumar, Advocate (Expert) 29 June 2013
Advised by the experts above the best they could based on the available facts.

now for more advise, come with full facts of the case.

Raj Kumar Makkad (Expert) 29 June 2013
No more to add in the best replies offered by experts.

Sudhir Kumar, Advocate (Expert) 29 June 2013
a classroom type query

Sudhir Kumar, Advocate (Expert) 29 June 2013
Keep on repeating

http://www.lawyersclubindia.com/experts/liability-of-bank-against-cheque-payment-after-death-of-a-c--402801.asp#.Uc7j99jQzmk

http://www.lawyersclubindia.com/experts/is-nominee-liable-to-pay-off-debt-of-deceased-398216.asp#.Uc7j_djQzmk

http://www.lawyersclubindia.com/experts/responsibility-of-bank-towards-withdrawal-from-atm-402806.asp#.Uc7j8tjQzmk

http://www.lawyersclubindia.com/experts/liability-of-bank-against-cheque-payment-after-death-of-a-c--402801.asp

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