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Teena Pilinguri   10 November 2018

enquiry on fd

Dear sir/ Madam,

my father was an retd govt servant. we are 2 siblings including my mother who lives with my younger brother and his wife.my father expired 6 month back (suicide). after retirement he had invested the retirement fund in fixed deposits ,naming my younger brother as a nominee.
Also note during the bank process of FD my younger was going with my
dad.
Now he is harrasing my mother to
break the deposit (fd amount was deducted from joint saving account of my dad & mom)so that he can get the amount.
my mother is worried , that he will not look after her if she break the FD and she doesn't have any source of income other than pension .
kindly suggest and advise.


Learning

 10 Replies

Shashi Dhara   10 November 2018

Don't worry though he is made as nominee he cannot claim on entire amount.it shud be confirmed thru will.then he has right. Now he inherits 1/3 of FD amount only. U &Ur mother will inherit remainig2/3 FD amount

Shashi Dhara   10 November 2018

Don't worry though he is made as nominee he cannot claim on entire amount.it shud be confirmed thru will.then he has right. Now he inherits 1/3 of FD amount only. U &Ur mother will inherit remainig2/3 FD amount

Kumar Doab (FIN)     10 November 2018

The FDR was in joint name of your mother and father? What is the mandate for FDR?

Why is your brother asking to break the FDR as in query and what is the need for IT as per Bank?

Kumar Doab (FIN)     10 November 2018

You may go thru bank rules on deceased depositor a/c that should be supplied to Nominee/claimant, joint a/c holder, legal hiers without any cost and should be available on Bank's website.

such rules are framed in accordance with RBI guidelines

that are duly narrated in RBI; Master Circular on Customer services 

You may go thru Chapter at 19, 20.

Bank is otherewise under obligation to Nominee.

If other legal heirs ave issues they can submit objections to BM under proper acknowledgment and also fetch court order restraining the bank and to pay equally to all legal heirs.

Kumar Doab (FIN)     10 November 2018

If mother is unable to maintain she can claim from relatives/legal heirs under provisions of 

Maintenance and Welfare of Senior Citizens (MWPSC) Act, 2007

and rules framed under the Act by your state.

IT is simple and cost effective.

Lawyer is not required.

 

G.L.N. Prasad (Retired employee.)     11 November 2018

To make it simple, there should be a compromise within class 1 legal heirs for settlement of the amount.  Legally your brother is entitled for his share, and I do not personally feel that his demand is illegal, though it may not be justified as his mother is not having any income.   At the same time, one should not forget that it is younger brother with whom your parents are residing, and he has also taken up responsibility and seeking his legitimate share.  If you are kind and generous, as your younger brother has taken the responsibility give your 1/3 share to your mother.  (All this in absence of will)

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     11 November 2018

I agree with Shri G L N Prasad. 

 

I wish to add here that a Nominee to a Deposit receives the money on behalf of all the legal heirs and he is the Trustee for the money received.  It is his bounden duty to dispose the amount as per the legal share to each of the legal heirs.  Therefore, have a family discussion and get things done amicably.

Teena Pilinguri   11 November 2018

I had already told and willing to give in writing that I don't want any share

Kumar Doab (FIN)     13 November 2018

IT is entirely upto you to relinquish your rights in said FD or whole estate of your deceased father.

Bank can discharge IT’s responsibility in favor of nominee if valid nomination exist, without asking anyone else to sign any written declaration from other legal heirs e.g; you.

Once the payment is made to nominee you can chose to remain silent and not to ask for any share from nominee.

Your mother is at liberty to ask for share or not to ask for share from nominee.

G.L.N. Prasad (Retired employee.)     13 November 2018

I am afriad that queriest is not well aquainted with facts.

According to my presumption the account was held by father and mother jointly, keeping the son as nominee.

As of now, as it is either or survivor account, mother can use that amount as she likes.

The nominee can step into the scene in case of both depositors are deceased.

The nomination can be changed at any time.

Without consulting the manager or concerned Bank official, there is over anxiety in the query.

It is purely family dispute and there is no litigation as of now.


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