How to claim the money from banks


My father deposited some amount in the bank  and nominated me for the same.  After his death, in order to claim that amount  the bank is demanding death certificate, heir certificate and indemnity bond which needs to be signed by all heirs.

Why is the bank demanding heir certificate where as the nomination is given already? Isn't just the death certificate enough? Or should we  produce any document for the father-daughter relation?

Is the indemnity bond mandatory for the banks as per RBI guidence or law? why is the bank demanding for it?

 

Thanks for any inputs.

-Niki

 
Reply   
 
Advocate

After the death of the depositor,the right to claim vests with the legal heirs.The indemnity is sought to safeguard the interest of the bank against any future claims by third parties.What the bank says is right.

 
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Thanks Sir, for your reply.

Why do the bank have to worry when the nomination is given? Is it not the responsibility of the nominee to distribute the money to all the legal heirs ? Some banks which i have enquired said no documents are required other than death certificate.

 
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Retired employee.

Bank is not supposed to insist for any other documents than copy of death certificate, ID/Address proof/KYC and a formal appication for settlement.  However some banks are taking law into their hands and dictating terms defeating the very purpose of introducing nomination clause.   The sky is not going to fall if the bank settles the claim in favour of nominee and it is quite legal as per nomination  registerered in their book/reclrds unless and until there are rival claims.  The only remedy is to approach Banking Ombudsman.  I was a retired manager, and  after introduction of Nomination clause settled several claims but never insisted Legal heir certificate/succession certificate etc/.

 
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Advocate

Sir,


There is no necessity for the bank to ask Legal Heirship certificate, when the deceased had nominated a name for his account or deposit as the case may be. However, the legal position of a nominee is a trustee of money of other legal beneficiaries ie. other legal heirs. The nominee has a legal duty to distribute the money to other legal heirs including him, if he is a legal heir. The nominee cannot become the sole owner of the money, as per several judgments reported. However, it is not the look after of the bank. Therefore, complain the matter to Banking Ombudsman within six months. If it is not possible, take the matter to Consumer Forum within 2 years from the date when the bank refused to entertain your application.
 

Thanks and Regards,

KN

 
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DEPUTY CHIEF EXECUTIVE OFFICER

AS PER NOMINATION RULES,BANK IS BOUND TO PAY THE MONEY TO THE REGISTERED NOMINEE.THE  BANK IS DUTY BOUND.THE NOMINEE HAS TO IDENTIFY HIMSEF/HERSELF BY COMPLYING WITH KYC NORMS.

 

HOWEVER ,THE LEGALHEIRS CAN CLAIM THE MONEY FROM THE NOMINEE AND NOT FROM THE BANK.THE NIMINEE HOLDS THE MONEY AS A  TRUSTEE NOT AS A LEGAL HEIR,UNLESS OF COURSE THE NOMINEE IS HIMSELF  IS  A LEGAL HEIR.

 
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FIN

It is believed that none of other family members, legal heir has staked a claim on the deposit with the bank/BM. Kindly check, if the nomination is registered on the FD/deposit receipt.

You can submit a written letter, enclosing self attested copies of your ID, address proof, pan card,addressed to BM of the bank, mentioning date of your previous representations in person, and demanding disbursement of paymnent at once. Obtain the acknowledgment of your letter under seal and full original signature by hand and ask the BM to put his name and employee number. YOu may mention that you are the registered nomineee, and you are showing the original proofs as per KYC rules to BM, copies of which are enclosed with your letter.

If the BM delays, you may lodge a complaint with nodal officer and chairman of the bank stating that the BM is exceeding the rules and causing harassment, and seek relief.

 
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FIN

Kindly enclose death certificate.

 
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RTI & CONSUMER ACTIVIST

If the branch manager does not comply based on nomination [without any other document except death certificate] then scale up the matter to Nodal Officer of the bank at Head Office. Please visit website of the bank and customer care/contact us link for address.


Total likes : 1 times

 
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Hai

After the demise of your father,all the legal heirs have the rights to claim the deposit from the bank.  Need of legal heirs by the bank is to safequard the bank, as wel to know the relationship between you and your father and others legal heirs if any (Govt records)

 
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