Bank nominee

Nasim (Querist) 20 February 2015 This query is : Resolved
Dear Sir / Madam,

I am the nominee of the bank account of my father. After my fathers death my mother has given a notice to the bank not to issue the cheque in my name and have asked the bank account to freeze the account. Please can you suggest what are her rights or can she claim the amount from the bank if I am the nominee.As per muslim law can she claim the amount.

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Kumar Doab (Expert) 20 February 2015
RBI: the central bank has issued comprehensive guidelines in this regard and such guidelines have statutory force and are binding on the banks and are not discretionary.
The bank is liable to keep such guidelines and rules framed under such guidelines on its website, in branch and to provide a certified copy without any cost to the claimant(s).
In case there is NO order by the competent court the BM/bank can discharge its responsibility by making the payment to Nominee and usually such payment is made on the spot.
You do not need to tender any indemnity/surety etc and have to supply the KYC docs, original FDR, original claim form.
You may note that the succession is decided as per personal law applicable to the deceased and you may discuss the mater with your lawyer and state your faith also as per various faiths/sects prevalent in Muslims.
The Nominee is just a trustee/hand to receive the proceeds and is liable to pass on to the successors or successors can sue…….
Master Circular on Customer Service in Banks
20. Settlement of claims in respect of deceased depositors – Simplification of procedure
20.1 Accounts with survivor/nominee clause
(b) there is no order from the competent court restraining the bank from making the payment from the account of the deceased;
20.1.2 It may be noted that 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 should 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.

Rajendra K Goyal (Expert) 20 February 2015
Well explained by the expert Kumar Doab, agree to it.

Guest (Expert) 20 February 2015
Mr. Nasim,

Your query seems to be purely an academic query, as that lacks the most crucial and relevant information.

When you say, your "mother has given a notice to the bank not to issue the cheque in my name and have asked the bank account to freeze the account," your description becomes irrelevant in the absence of the nature of response of the bank on the notice and to your claim with the bank.

The question arises, have you put your claim with the bank and how the bank has responded to that?