(Guest)

Death claim for bank fd

my uncle had opened his SB account with locker facility in Indian Overseas Bank but not nominited anyone.

after his death, my aunty got letter of administration in her favour from civil court only for his locker. in this letter of administration, there are listed all the things like gold, cash FD papers etc. which are found in locker during process for evaluating court fee/stamp duty.

Now all the things are OK and my aunty accesses this locker.

But there is one problem. in this locker she got Bank FD papers worth 20 lacs in which some FD papers are of other Bank and rest are of same Bank (Indian Overseas Bank).

and on the letter of administration, there is mention only like this "FD papers worth 20 lacs" but not its detail like FD a/c no(s)., Bank name etc.

As she pay the court fee for all the things. So, is my aunty would claim in respective banks on the basis of this "letter of administration"?

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5 Replies

surjit singh (Assistant) 15 July 2012

First you submit an application for getting your succession declared by the Court, in the meantime you approach the concerned bank with the FD and try to see that whether at the time of filling the form for FD the name of the nomination is mentioned then there is not much problem otherwise you will have to complete the succession declaration process. If the name of the nominee is mentioned the bank authority is bound to provide you the amount on production of required document for your identification.

Since you have got the letter of administration from the Civil Court, where there is no mention of the bank name or FD Account, you can approach the Bank with the said letter of administration. If the bank authority agrees to honour the same it is well and good, if not you get a written letter from the bank and then can again approach the said Civil Court, for the required correction/modification of the letter of administrtion,stating that the FD's account No. and the bank name came to your knowledge only when the Bank Locker was accessed. I think it is not a big problem.

(Guest)

what kind of letter we request from Bank, if they does not agree to honour the same?

thank you so much

Kumar Doab (FIN) 15 July 2012

Mr. Surjit Singh has given valuable advice.Kindly follow it.

RBI has issued guidelines for treatment of deceased depositor account.

2. ACCESS TO BALANCE IN DEPOSIT ACCOUNTS:

(B) Accounts without the survivor/nominee clause

2.3

5. Access to the safe deposit lockers / safe custody articles

And

20. Settlement of claims in respect of deceased depositors.

Provisions of the Banking Regulation Act, 1949

Banks should adhere to the provisions of Sections 45 ZA to 45 ZF of the

Banking Regulation Act, 1949 and the Banking Companies (Nomination)

Rules, 1985.

21. Access to the safe deposit lockers / safe custody articles return of

safe custody articles to Survivor(s) / Nominee(s) / Legal heir(s)

23 Release of other assets of the deceased borrowers to their legal heirs

IBA has also issued guidelines.

Bank's policy on deceased depositor accounts is contained in bank Manual which should be available in branch on demand, and displayedon bank's website.Bank can not violate the policy.

You may study these and claim the articles.

Attached File : 214374370 deceased depositor account 63603.pdf, 214374370 deceased depositor iba.doc, 214374370 deceased depositor account 57cs010709 full.pdf downloaded: 373 times

JANAK RAJ VATSA (ADVOCATE) 20 July 2012

dear querist, the advice given above is absolutely right. however, if you can obtain the succession certificate from the civil court, then it will solve the matters once for all. however, if the name is given inthe fd as a nominee, even then the bank cannot decline to hand over the proceeds of the fd.