Banking and finance lawyers

This query is : Resolved 

Querist : Anonymous (Querist)
10 June 2021

I am a software engineer by profession. I stay in Pune

FD opened from saving accounts which was jointly owned by me
I had a joint savings account along with my late Father in Buxar district – Bihar. We opened FD of 3 lakhs on the name of my father the money for FD was credited from mentioned savings account which I was joint owner. The FD is visible through mobile banking or internet banking but I am not able to liquidate it from mobile or internet banking.

Sequence of Events
1. Nominee of FD and my mother passed away prior to my father on 7-Feb-20 at Dumraon.
2. My mother’s death left a shocking impact on my father late Dineshwar Nath Trivedi and his health condition started to deteriorate.
3. I left the bank work aside that had come up after my mother’s death and took my father to Pune for medical treatment immediately after the last rituals of my mother.
4. The plan was first to stabilize my father then go back to Bihar along with him (my father) and include my name in nominee of all the accounts where my mother was nominee.
5. Also as the FDs was opened from my savings account I was confident of liquidating it online through mobile or internet banking
6. However, this was not what the almighty wanted. Unfortunately, I had to face more difficult times and a different script was in store for me.
7. My father never stabilized after this incident. His condition worsened in Mid-Oct 2020. He passed away in Pune on 29-Oct-2020. The owner of FD passed away.

A When we open FD online through mobile banking or internet banking from savings account then we can liquidate the FD also online. However, when the FD is opened from a branch office and the money is taken from the savings account then we cannot liquidate the money online. The FD only shows as read only mode from the mobile or internet banking. May, I understand the reason for this. If the same FD was created online through internet banking or mobile banking then I would have been able to liquidate it online.
B If you look at this FD then the source of FD money trail is from my savings account. The interest from the FD is credited monthly into my savings account. I want to understand the RBI claim settlement policy for such cases in which the FD money has flown from my savings account. The FD holder and nominee of FD (my father and mother) both have passed away.

C. If we open the FD online and if we have the AUTO RENEW FLAG set as N then on maturity the FD breaks automatically and the money flows into the savings account from which FD was created.

D. In such cases the claim settlement should be with minimum of documentation as the money has flown to and from the saving account. I want to understand the deceased claim settlement process.

Sankaranarayanan Online (Expert)
10 June 2021

You are not disclosed about who all other legal heirs in your lengthy query. if you alone the legal owner of the deposits. You need to submit the death certificate of your father and your predeceased mother along with the legal heir certificate ,

Sankaranarayanan Online (Expert)
10 June 2021

if you alone the legal heir of your father then with the support of your parents death certificate and legalheirship certificate you can claim the deposit.

Querist : Anonymous (Querist)
10 June 2021

I understand the legal heir and the claim process. My question is slightly different with banking laws.
1. FD even though on my father's name the money transaction for FD has flown from my savings account. Had I created the FD online I should have been able to break it also online. Just because the FD was created in bank still it should allow the savings account owner to break the FD online. Is there any such banking RBI law. Or is this is a defect in the banking software system.
2. My second point is nominee which is my mother has also passed away. The money has flown from my saving account why should I even bother for legal heir certificate and any other lengthy process. There are 3 players - saving account money owner, FD owner and nominee and now only the money owner is left. Is there any RBI deceased claim settlement law under which this can be covered apart from what you have mentioned

Advocate Bhartesh goyalOnline (Expert)
10 June 2021

You have to complete so many formalities including obtaining succession certificate from competent court ,to get transferred the F.D in your account without doing required formalities F.D can't be transferred in your account so contact to a Prudent local lawyer and proceed as per his guidance.

Querist : Anonymous (Querist)
10 June 2021

I will provide all the legal documents and get the FD money. However, this also implies that RBI policies and deceased claim settlement are not friendly with the child who is taking care of parents . Once the claim is settled I will then take up this matter with RBI The law should encourage the child who is taking care of ageing parents.

T. Kalaiselvan, Advocate Online (Expert)
10 June 2021

The law is very clear in this aspect.
You say that the money was transferred from your savings bank account.
You should understand the underlying fact that once you have given away your money to your father or anyone either for FD or a gift, you do not have anymore rights over that money.
The claim what you re making it is as legal heir or successor in interest.
The legal procedure involved for this death claim is different to that of your own understanding about it.
You have to comply with the legal requirements laid down in the law in order get the claim disbursed to the legal heirs.
Your mother is no more now hence the nomination becomes infructuous
There is no point in arguing about your mother's nomination now since it is no more available after her death.
Even now if you closely observe the issues, you can understand the situation and may initiate proper steps as per the due process of law or legal procedures.

Querist : Anonymous (Querist)
10 June 2021

Thanks everyone for your guidance. I understand this better. I could have easily avoided this problem by opening the FD as joint account with me as one of the account holder. Thus FD could have easily been operated by either of survivor. The main reason for this problem is the unprecedented situation due to COVID. I lost both parents in quick succession that while I was still absorbing one loss an planning to change the nominee the second loss happened.

T. Kalaiselvan, Advocate Online (Expert)
11 June 2021

You are welcome for your understanding and appreciations.

Sankaranarayanan Online (Expert)
11 June 2021

You need not worry to be a joint holder of deposits, you can be a joint holder with your wife.

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