Closure of bank account of deceased
Vijaya Bhaskar
(Querist) 30 March 2017
This query is : Resolved
Dear learned experts
My only sister lost her husband in an accident last year February 2016. Her late husband was holding a salaried Bank account with ICICI bank. My sister was not aware to close nor intimated to the bank. In the month of march 2016 the employer issued February salary and gratuity in favor of her husband, which were deposited and withdrawn.
Recently my sister closed deceased mobile no which was registered with ICICI bank.
Since the accident case is in the Court for compensation, court has insisted for his six months bank statement, when we approached the ICICI bank they said it takes 15 working days to close and settle the amount if any to the nominee. My sister is the nominee as per record.
Now my query is, should we immediately close the deceased account and receive the funds to me sister's account who is a nominee as per records.
Will the Court issue compensation in the name of deceased so that in future we might want to deposit Into his account and withdraw.
Should the account be in operative mode until the death claim from court, pf, pension or any claim received in his name.
Should she avoids using Atm card to obtain mini statements checking periodically for any credits from court etc.
Please suggest.
Guest
(Expert) 30 March 2017
Court will not order to Issue Compensation on a deceased name.The Order will be to Issue the Payment on Legal Heir's Name who had filed the Suit/Claim.Operating the account of deceased is Illegal also.
Kumar Doab
(Expert) 30 March 2017
Payment of claim is to Legal heir.
Obtain legal heir certificate. It would be useful for other matters also.
Usually O/o Tehsildar issues it.
Kumar Doab
(Expert) 30 March 2017
Wife of deceased depositor is Nominee.
Nominee can file to claim from deceased depositor account.
Bank has indicated TAT for payment to nominee.
RBI has issued guidelines on Treatment of Funds in Deceased Depositor account and its operation……….
4. Treatment of flows in the name of the deceased depositor
In order to avoid hardship to the survivor(s) / nominee of a deposit account, banks are advised to obtain appropriate agreement / authorization from the survivor(s) / nominee with regard to the treatment of pipeline flows in the name of the deceased account holder. In this regard, banks could consider adopting either of the following two approaches:
• The bank could be authorized by the survivor(s) / nominee of a deceased account holder to open an account styled as 'Estate of Shri ________________, the Deceased' where all the pipeline flows in the name of the deceased account holder could be allowed to be credited, provided no withdrawals are made.
OR
• The bank could be authorized by the survivor(s) / nominee to return the pipeline flows to the remitter with the remark 'Account holder deceased' and to intimate the survivor(s) / nominee accordingly. The survivor(s) / nominee / legal heir(s) could then approach the remitter to effect payment through a negotiable instrument or through ECS transfer in the name of the appropriate beneficiary.
https://rbi.org.in/scripts/NotificationUser.aspx?Id=2284&Mode=0
Kumar Doab
(Expert) 30 March 2017
You may also go thru:
Master Circular on Customer Service in Banks
20. Settlement of claims in respect of deceased depositors – Simplification of procedure
https://www.rbi.org.in/scripts/bs_viewmascirculardetails.aspx?id=9008
The Bank can guide and help you on periodic statements that you may want to court of law.
On Closure the bank can provide you a/c statement till date of payment of showing amount + accrued interest.
Rajendra K Goyal
(Expert) 30 March 2017
You asked:
Now my query is, should we immediately close the deceased account and receive the funds to me sister's account who is a nominee as per records.
Reply:
Account of deceased should be closed. nominee should get the funds.
You asked:
Will the Court issue compensation in the name of deceased so that in future we might want to deposit Into his account and withdraw.
Reply:
Court would not order to issue compensation in the name / account of deceased, it would order to be paid to legal heirs.
Rajendra K Goyal
(Expert) 30 March 2017
You asked:
Should the account be in operative mode until the death claim from court, pf, pension or any claim received in his name.
reply:
Account of deceased need not be kept operative.
You asked:
Should she avoids using Atm card to obtain mini statements checking periodically for any credits from court etc.
Reply:
No amount should be withdrawn from account of the deceased through ATM. Nominee should claim full balance.
Vijaya Bhaskar
(Querist) 31 March 2017
Thank you so much to all my learned expertise for your remarkable guidance and timely suggestion. I am very much thankful for all your support on this portable. Your inputs for every citizen's needs are highly appreciated.
