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Death claim

(Querist) 23 April 2018 This query is : Resolved 
My father is having account with SBI Recently he expired .He is having 2 SB accounts and One senior citizen saving scheme deposit worth 5 lacks is having nominee (may be quarterly interest) and TD’s worth of all i mean senior citizen saving scheme deposit, SB and Term deposits total 9.5 lacks. All these are under one CIF account out these 3 are having nominee and other are not having no nominee. When we consult bank authorities for claim they are saying its not possible to settle partially even though nominee is registered. They are asking witness and Surety for 15 lacks from other person not related us. Kindly let us know the correct rules to claim the process. Please do the needful
Krishnapur Ananth Nagamani (Expert) 23 April 2018
simplest solution is to get all the legal heirs to swear an affidavit to the effect that the three nominees be allowed to collect the dues from the respective accounts and also that you all agree to have one chosen person to collect the dues from the other accounts; the purpose of nominee in any bank account is to remove hassles in collecting the money in the account on the death of the holder of the account; you can also visit the website of the concerned bank and study "citizens charter"; you can also give an indemnity bond to the bank jointly for the sum under CIF; you can also file an RTI to the bank seeking procedure and policy for releasing the amount under a single CIF, but different types of accounts and with or without nominee on each such account; this will give you the necesarry armour to confront the officials of the branch concerned; you can also visit RBI website for guidelines
Ms.Usha Kapoor (Expert) 24 April 2018
I agree with the advice of above expert.
R.Ramachandran (Expert) 24 April 2018
Wherever there is a registered Nominee, ask the nominee to claim the amount in writing by attaching the death certificate.
Dont unnecessarily indulge in oral discussion with the bank.
Ask the bank to give it in writing, in case they refuse to honour the claim by the nominee.
Once the bank gives it in writing, then make a complaint to the Banking Ombudsman. You will get the relief.

In case there is no nominee in regard to any account or deposit, and if the amount involved is less than Rs. 1 lakh, then the same can be claimed by the legal heirs by giving Indemnity Bond. Only if the amount involved is more than Rs. 1 lakh, then succession certificate has to be obtained by approaching the jurisdictional civil court.
Kishor Mehta (Expert) 24 April 2018
The Bank has to hand over the proceeds to the nominee after satisfying itself of the antecedents of the nominee. The Bank cannot demand any surety from the nominee. For the accounts, where no nomination is made, you will need to get a succession certificate from the Court of Law.
Kumar Doab (Expert) 24 April 2018
GO thru;
RBI; Master Circular on customer services ; 19,20

RBI guidelines have statutory force and Bank cannot violate...
Ask for claim forms..........
Attach in Forum section.......
viswanath (Querist) 25 April 2018
Thanks for your valuable advice's But Bank officials are saying that amount is more than 5 lacks(for TD) even though nominee is registered and also you may have legal heir family certificate we have to follow the procedure i.e surety and all are linked under one customer so we can't settle the payments partially . please suggest really any such rules are existed in SBI
Krishnapur Ananth Nagamani (Expert) 25 April 2018
RBI circulars on death claim No.DBOD.BC.148/09.07.007/99-2000 dated March 14, 2000 and BC.56/09.07.007/2000-01 dated December 6, 2000 superseded; in supersession of all the earlier instructions on the subject, to facilitate expeditious and hassle-free settlement of claims on the death of a depositor. the following instructions are issued
2. ACCESS TO BALANCE IN DEPOSIT ACCOUNTS

(A) Accounts with survivor/nominee clause :
in the case of deposit accounts where the depositor had utilized the nomination facility and made a valid nomination or where the account was opened with the survivorship clause ('either or survivor', or 'anyone or survivor', or 'former or survivor' or 'latter or survivor'), the payment of the balance in the deposit account to the survivor(s)/nominee of a deceased deposit account holder represents a valid discharge of the bank's liability provided :

a. the bank has exercised due care and caution in establishing the identity of the survivor(s) / nominee and the fact of death of the account holder, through appropriate documentary evidence;

b. there is no order from the competent court restraining the bank from making the payment from the account of the deceased; and

c. it has been made clear to the survivor(s) / nominee that he would be receiving the payment from the bank as a trustee of the legal heirs of the deceased depositor, i.e., such payment to him shall not affect the right or claim which any person may have against the survivor(s) / nominee to whom the payment is made.
since payment made to the survivor(s) / nominee, subject to the foregoing conditions, would constitute a full discharge of the bank's liability, insistence on production of legal representation is superfluous and unwarranted and only serves to cause entirely avoidable inconvenience to the survivor(s) / nominee and would, therefore, invite serious supervisory disapproval. In such case, therefore, while making payment to the survivor(s) / nominee of the deceased depositor, the banks are advised to desist from insisting on production of succession certificate, letter of administration or probate, etc., or obtain any bond of indemnity or surety from the survivor(s)/nominee, irrespective of the amount standing to the credit of the deceased account holder.
(B) Accounts without the survivor/nominee clause
deceased depositor had not made any nomination or for the accounts other than those styled as 'either or survivor' (such as single or jointly operated accounts), banks are advised to adopt a simplified procedure for repayment to legal heir(s) of the depositor keeping in view the imperative need to avoid inconvenience and undue hardship to the common person. In this context, banks may, keeping in view their risk management systems, fix a minimum threshold limit, for the balance in the account of the deceased depositors, up to which claims in respect of the deceased depositors could be settled without insisting on production of any documentation other than a letter of indemnity.

therefore if your bank has fixed the sum as below 5lks you hv to comply with the requirements they demand of indemnity bond
3. Premature Termination of term deposit accounts
banks are advised to incorporate a clause in the account opening form itself to the effect that in the event of the death of the depositor, premature termination of term deposits would be allowed. The conditions subject to which such premature withdrawal would be permitted may also be specified in the account opening form. Such premature withdrawal would not attract any penal charge

4. Treatment of flows in the name of the deceased depositor
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.
5. Access to the safe deposit lockers / safe custody articles : same guidelines above apply for each category
6. Time limit for settlement of claims
within a period not exceeding 15 days from the date of receipt of the claim subject to the production of proof of death of the depositor and suitable identification of the claim(s), to the bank's satisfaction.
8. Simplified operational systems / procedures
The Indian Banks' Association (IBA) has been advised to formulate a Model Operational Procedure (MOP) for settlement of claims of the deceased constituents, under various circumstances, consistent with the instructions contained in this circular, for adoption by the banks. ....
9. Customer Guidance and Publicity

Banks are advised to give wide publicity and provide guidance to deposit account holders on the benefits of the nomination facility and the survivorship clause. Illustratively, it should be highlighted in the publicity material that in the event of the death of one of the joint account holders, the right to the deposit proceeds does not automatically devolve on the surviving joint deposit account holder, unless there is a survivorship clause

therefore you have a duty and right to satisfy yourself with documentary policy guidlines of the bank as to procedure applicable to each of the accounts.

extracted from https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=2284&Mode=0; two comments 'about indemnity requirement compliance' and 'duty and right about policy' are my comments

trust this gives you satisfactory reply

you can download file from https://rbidocs.rbi.org.in/rdocs/notification/PDFs/63603.PDF


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