Ganugupati Sivaram (Senior Asst) 07 February 2014

Encashment of time barred andhra bank fds by nominee

In the month of May 2005 my mother aged around 80 years by that time, went to Vijayawada to get her railway pension, but did not return back. We have searched for her but could not trace her where-abouts. We thought that she might had been died suddenly some-where. At that time we have hesitated to give a police complaint. In December 2008 we have found two FDs from her old trunk, taken on Andhra bank, Krishna Lanka branch, Vijayawada, each maturity value 25,000/= The maturity date was 6-6-2005. When I informed the bank authorities they asked to furnish the copy of FIR to arrange payment.

I wrote to Ombudsman,care RBI,Hyderabad to kindly inform if there is any direction/provision/amendment/relaxation in the rule position so that the amounts can be paid to the nominee, in the absence of the depositor after waiting for 13 years(The FDs were taken on 6-6-2000 and matured on 6-6-2005) The Ombudsman simply forwarded my representation to the Nodal officer of the Andhra bank and she simply passed it to the branch manager. Again the branch manager informed me that I am not the nominee and copies of FIR and non-traceable report from the police are must to arrange payment. So i am unable to know who is the nominee but i am sure the nominee should be either me or my sons.

I am now aged 65 years and suffering from BP and diabetics and the above amounts will be of great help to me in these hard days.

G.Sivaram, Hyderabad dt:06-02-2014

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Kumar Doab (FIN) 07 February 2014

Many of the banks/BM’s do not hesitate to record the registration of nomination on FDR.

You may check if it is mentioned on FDR.

The FDR a/c opening form must be available with BM and by applying your goodwill/rapport you can see it.

RBI has issued comprehensive guidelines on recording the nomination, payment of proceeds to the nominee’s/survivors/legal heir’s of Missing persons/deceased depositors, which are available on website of RBI,IBA,BCSBI, and bank has to maintain it on its website, keep it in Branch, and a printed version of it has to be supplied to customer on demand free of cost.

The guidelines call for hassle free and time bound settlement of claims.

The BM seems to be right and the maturity values seems to be within the Min. Threshold limits of the bank and procedure explained to you seems to be within the rules and policies.

The guidelines are in very simple and easy to understand language.

Kindly note if your exercise undue pressure the BM may send the matter for legal opinion and once it is obtained you shall have no other recourse but to approach civil court. It shall be better to manage the things to satisfy the requirements of BM and BM can make the payment.

Otherwise you would have to obtain ‘Presumed to be dead’ certificate from local civil court.

You may go thru: RBI’s : Master Circular on Customer Service

19.5. Incorporation of the legend “Nomination Registered”

in pass book, deposit receipt etc. and indicating the

Name of the Nominee in Pass Books / Fixed Deposit

Receipts

22.	Settlement of claims in respect of missing persons

Banks are advised to formulate a policy which would enable them to settle the claims of a missing person after considering the legal opinion and taking into account the facts and circumstances of each case. Further, keeping in view the imperative need to avoid inconvenience and undue hardship to the common person, banks are advised that keeping in view their risk management systems, they may fix a threshold limit, up to which claims in respect of missing persons could be settled without insisting on production of any documentation other than (i) FIR and the non-traceable report issued by police authorities and (ii) letter of indemnity.

20. Settlement of claims in respect of deceased depositors –

Simplification of procedure. :

20.4 Treatment of flows in the name of the deceased depositor

20.5 Interest payable on the deposit account of deceased depositor

20.6 Time limit for settlement of claims