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Change of karta on demise of karta huf

04 May 2023

Why does idfc first bank ask for tehsildar certificate of succession and or legal heir just to change name of karta of huf on demise of previous karta?they had not asked for anything while opening our huf account fixed deposits.we have only FDS with IDFC BANK

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9 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178226 Points)
Replied 04 May 2023

It seems they do not have records of members of HUF required to be submitted at the time of opening account.

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INDIA FIRST (16 Points)
Replied 04 May 2023

They are asking for tehsildar certificate for legal heir etc.y should i be made to go to tehsildar.also,why they didnit take coparceners details at time of opening the fd account.this is pure harassment..i am also a kutchi from goregaon

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178226 Points)
Replied 04 May 2023

Most of the newly born banks do not have clear concept about such requirements for HUF accounts.

Few years back one of our customers had similar problem with leading private sector bank.

In your case you can submit your HUF deed with list of coparceners at the time of opening account, You can also declare the changes in coparceners/members in due course of time. Request them to give you alternative like notarized declaration of legal heirs etc. which I think they would be glad to accept as alternative.

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INDIA FIRST (16 Points)
Replied 04 May 2023

It's old huf FDS of 2019.What do i do about their stupid demand of tehsildar certificate NOW

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178226 Points)
Replied 05 May 2023

Bureaucracy can have negative consequences that impact individual people (both those who contact the bureaucracy and those who work within it) and organizations.

People who contact bureaucracies can be frustrated by the excessive "red tape" that goes with them. These rules, which often seem pointless to the person contacting them, cause delays and other inconveniences.

Bureaucrats themselves can become frustrated with the nature of their jobs. They typically are bound by rules that deprive them of much autonomy and freedom of choice. They can come to feel like cogs in a machine instead of independent workers.

Organizations can be stifled by excess bureaucracy. They can lose flexibility because everything that happens must go through all the levels of the bureaucracy. This can make it harder for the organization to take fast and decisive action.

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INDIA FIRST (16 Points)
Replied 05 May 2023

Dhirajbhai, we don't to go for partition,liquidation etc of huf.plus, idfcfirst bank gave me the first fd opening form scanned copy of huf,where they had taken signature of only my late elder brother as karta,and my signature as signing authority.That is what their form shows.Now,why they are making us run to tehsildar and what not.Behaviour of BM SHIKHA PANDEY TOO HAS NOT BEEN VERY COOPERATIVE.I REGRET OPENING FDS OF ALL OUR FAMILY MEMBERS.THIS HUF JUST CHANGE OF KARTA EXERCISE IS FRUSTRATING.NO ODR BANK IS HAVING SUCH RULES.WHO MAKES RULES FOR THIS? IS IT THE RBI OR BANKS HAVE OWN RULES??

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178226 Points)
Replied 05 May 2023

As I said earlier, the bank is regrating the mistake of not getting the details of HUF while opening the account. May be the BM would have changed. As per bank records they don't have any records of HUF members; so they want to safeguard themselves against any unknown person claiming to be heir of the deceased person. & as such I support their such action, be it now.

RBI is not interfering banks for any such rules. They have their own formats for KYC of HUFs.

It's not that much difficult as you think, it will also safeguard your interest in future.

Good Luck.

INDIA FIRST (16 Points)
Replied 06 May 2023

Why should I be made to go to tehsildar or court just because of their mistake?? It costs lot of money and time.Why can't i hold the bank and its officers responsible for this.Why should the customer be made to undergo all this.Dhirajbhai,i m also a kutchi.Would like to consult u.pls leave ur email id

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178226 Points)
Replied 06 May 2023

Answer to your question in short is 'Disadvantage of bureaucracy'

Our policy is to check the steps for safety at the start of any program, which you have ignored in the beginning.

Secondly, rectify the same at any cost whenever such problems arise, and hence advise you to cooperate bank and resolve the issue. We personally cannot help you in any alternative..

One more suggestion: as seen from the change in Karta, the HUF seems to be your father's. So, legal heirs of your brother's family would not be required here. The list of all the beneficiaries who hold the rights in the HUF should be declared.