Can a bank refuse claim on FD to a real nominee

Others 414 views 5 replies

jraju

Others

283 Points Joined March 2014

Hi, My mother has opened a term deposit account and nominated me. The account was opened in 2018-19. My mother expired in 11th month 2021. When I claim the transfer of FD account to me, the bank said that no nominee has been nominated for the account and so asked me to fill legal heir certiicates , obtain signatures and NOC from stake holders which is a cumbersome process . The term deposit matures on 18th of this month 2022.

Can bank refuse to accept the application itself. If they give in the refusal in writing, then i could go for other alternatives.

Would it not the responsibility of the bank to obtain the nominee details. Now it seems that there are two options , appointing nominee or does not nominate in the newer forms of FD, and nobody gives the second option, as everybody would like to nominate some as death is sure to occur and men is mortal/

what are the other alternatives available. I wrote to the bank on grievance redressal portal, which evinced no response so far.

As I am having account with the said bank and also a FD accouunt for a lakh, could not bank accept my signature on a indemnity bond? The FD amount is 30000 Rs.

I saw RBI circulars, in way back 2005 to not insist on succession certificates if the amount is within the minimum threshold money and could give to nominee on indemnity.

I do not know the present position on this .

Replies (5)

jraju

Others

283 Points Joined March 2014

So far, no reply has come. Can anybody reply to the above query

S A

58 Points Joined July 2019

You query is not clear. In first sentence you have said "and nominated me".

If she nominated you, why would the bank object?

What proof do you have that you are the nominee?

jraju

Others

283 Points Joined March 2014

Hi, When my mother opened the account, the bank would have checked the nomination details. In new forms of latest years, you have to click either nominate or no nominee in the form to confirm if you opt the correct one. I do not think, that anybody is depositing the FD to take the proceeds after ones death to the bank itself. These are normal considerations.The bank did not receive the claim letter by me and inform me about the refusal in writing.

Since there is no fill up of nominee in their computer details, I was asked to file legal heir certificates etc.

The deposit was started and the latest receipt by the bank had no nomination name or anything printed on it.

I think that I have made it clear to S A to reply

S A

58 Points Joined July 2019

Which bank is it?

You will have to check the bank's policy about this.

RBI's guidelines are not very clear about such issues. There is a "may" in the master circular and that means banks have the liberty to decide their own policies.

"In this context, banks may, keeping in view their risk management systems, fix a minimum threshold limit, for the balance in the account of the deceased depositors, up to which claims in respect of the deceased depositors could be settled without insisting on production of any documentation other than a letter of indemnity."

https://www.rbi.org.in/scriptts/NotificationUser.aspx?Id=2284&Mode=0

jraju

Others

283 Points Joined March 2014

Hi, the link is not opening.

I have already sent this to their grievance email.

RBI/2015-16/59
july 1, 2015 to All Scheduled Commercial Banks
(Excluding RRBs).Leg.BC. 21/09.07.

20.2 Accounts without the survivor / nominee clause

In case where the deceased depositor had not made any nomination or for the accounts other than those styled as "either or survivor" (such as single or jointly operated accounts), banks are required to adopt a simplified procedure for repayment to legal heir(s) of the depositor keeping in view the imperative need to avoid inconvenience and undue hardship to the common person. In this context, banks may, keeping in view their risk management systems, fix a minimum threshold limit, for the balance in the account of the deceased depositors, up to which claims in respect of the deceased depositors could be settled without insisting on production of any documentation other than a letter of indemnity.

No reply so far received. The custodian bank use ,may, instead of authoritative is like escaping the main issue, I think.

If the amount is huge, then this clause of succession etc would be needed . A single claim for Rs.30000 , if it needs all certificates, no objection, kyc signed etc would it not be too much. I say it is a well established private bank

Had they rejected my claim in writing then I can go to the ombudsman. Still waiting