Bypass nominee of bank account

Querist : Anonymous (Querist) 31 December 2020 This query is : Resolved
My mother set the nominee for her bank account as my cousin. (her sisters son). she was misguided into doing so, he was present with her when opening the account.

Now mother has expired and bank says money will be given to nominee and the nominee has no intentions of passing over the money to us - Legal heirs.
I know Succession certificate can be procured and matter sorted out, but we all know it is a costly and more importantly takes 5-7 months
I have found RBI circulars where it clearly states Bank should not insist on Succession certificate if the all legal heirs are available.
Bank is harping on the same tune - We can only give to nominee or get Succession certificate. We have Legal heir certificate issued by Tehsil office and Death certificate

My question is - How to bypass nominee and get money without going through trouble of getting Succession certificate

Release of Assets of Deceased Customers to Legal Survivors/Claimants
DBOD. BC.No. 55 /09.07.007/2001-02
https://www.rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=545

Additional points for the above circular
DBOD.BC.No. 63 /09.07.007/2001-02
https://www.rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=569

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Guest (Expert) 01 January 2021
Nominee is Just an Responsibility and Nominee can not misuse or use the amount for any reason and he is only entrusted with the responsibility of Legal. distribution to Legal Heirs. Your Legal Heir Certificate would suffice for your claims. Discuss in detail with the concerned Bank Manager and if required seek the guidance of an Local Advocate.

Advocate Bhartesh goyal (Expert) 01 January 2021
Nombre is trustee of amount and he can not utilise the amount for personal gain Nominee is duty bound to distribute the amount to legal heirs of deceased.Write a letter to bank manager that you all are legal heirs of deceased and entitled to get the money .

SHIRISH PAWAR, 7738990900 (Expert) 01 January 2021
Hello,

The bank is rightly asking you to produce the succession certificate. Otherwise, the bank has the authority to release the money to the nominee. You may thereafter demand money from the nominee as the nominee is the only trustee of the money for legal heirs. So now you can take action against the bank not to release the money to the nominee or you may apply for a succession certificate from the court.

Rajendra K Goyal (Expert) 01 January 2021
Bank would be discharged of the liability by paying the balance to the nominee registered in the account.

You have two options, either lodge your claim with the nominee to pass on the benefit to legal heirs as he is a trustee of the legal heirs.

If he is not agreeing, move to court for a stay prohibiting the Bank to release the proceeds till final decision. Legal heirs should claim / get the proceeds through court orders in their favor.

Dr J C Vashista (Expert) 01 January 2021
You have no option but to disclose your identity / concern / locus standi and file a succession petition on behalf of LRs of depositor with all relevant documents.
Bank is legally correct in their version.
Seek professional services of a local prudent lawyer.

P. Venu (Expert) 01 January 2021
Yes, the Bank is correct. But the nominee receives the fund in the capacity of the trustee of the legal heirs and he is under strict obligation to make over the fund to the legal heirs. You may serve a legal notice to h to hand over the fund immediately on its receipt

Bypass nominee of bank account

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