Police csr
Rame
(Querist) 13 November 2013
This query is : Resolved
Respected Sirs,
My father deceased few months back. He has left bank fixed deposits. But the FD bonds are missing. He has nominated Son as nominee.
Bank says they need Police CSR to issue duplicate FD bonds. Is it correct? They anyway get indemnity letter from Nominee, protecting themselves. If Bank ask for Police CSR, does it not amount to double documentation?
I have approached Police for CSR. Police say they will give it only after a week. I urgently need CSR. Does Police do investigation for CSR purposes? Cannot they give CSR across the table, as y'day Supreme Court has stated Police should file FIR irrespective of whether investigation is made or not.
Rajendra K Goyal
(Expert) 13 November 2013
The Fixed Deposit Receipts are only receipts of deposit, are not negotiable Instruments and are not transferable like negotiable instruments. Duplicate should be issued on giving letter of Indemnity (Some Banks accept un-stamped even) and application. No need of Police CSR / FIR.
If the Bank is of the opinion that the FDR may have been pledged somewhere, Indemnity is cover. Moreover without noting lien in the books of Bank lien on FDR is of no use and not enforceable on Bank.
Bank should release the deposit without delay in case nomination exists.
Devajyoti Barman
(Expert) 13 November 2013
Better approach police for speeding up the papers.
malipeddi jaggarao
(Expert) 14 November 2013
Two issues:
1. Bank asked police Community Service Receipt issued by police for issuing duplicate bonds.
First of all, where are the deposit receipts? They should be with your father only. If he has any locker, they must be lying in the locker. Make efforts to retrieve them.
Bank's advice to obtain CSR from police is not justified. What CSR will reveal? It will say that they have received a complaint. What is the purpose of such certificate and its use to the Bank? You should ask the bank the purpose of such certificate.
2. What for you require duplicate deposit receipts? You are not entitled for any loan against them and you do not have the right to close the deposits prematurely. Being the nominee, You are entitled only to receive the money on the date of maturity. Normally bank should not issue duplicate deposit receipts in a deceased account. They should dispose-off the funds as per the instructions if already recorded or pay to the legal heirs upon maturity. However if the bank is willing to issue duplicate receipts, you wait for one week to get the CSR from police. It is not a big time.
The best course is - give a letter to the bank stating that you are the nominees in the fixed deposit receipts (give the details if poissble) of the deceased, you could not trace out the deposit receipts and advise the bank not to allow any others to deal with the deposits. Keep an acknowledgement with you. The amount will be paid to you in the capacity of nominee on the date of maturity.
Lastly, you are only the nominee of the deposits, not the rightful owner. Nomination authorises you to receive the money as a trustee and the legal heirs have their claim over it.
Rajendra K Goyal
(Expert) 14 November 2013
Expert malipeddi jaggarao ji,
Humbly submitted that in case of deceased account premature payment of FDR is allowed (by nominee also), few lines from RBI master circular on customer service are as under:
RBI/2012-13/50, DBOD No.Leg.BC. 21 /09.07.006/2012-13 July 2, 2012
20.3 Premature Termination of term deposit accounts
In the case of term deposits, banks are required 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.
R.K Nanda
(Expert) 14 November 2013
nothing more to add.
Rame
(Querist) 18 November 2013
Respected Sirs,
Thank you for your valuable opinions.
