Bank not giving the collateral documents

Assistant manager

Hello, I have taken an educational loan from Andhra Bank in 2005 in Andhra Pradesh. During that time they asked to give the collaterals. Sowe i have kept my grand father's house as collateral.My father also signed on all the documents. In 2011, we have cleared the loan. But my father and grandfather expired in 2008 itself. Now the bank is not giving the documents. Every time they ask for death certificates and signature from all departments but finally they are not giving. Recently they said we have to get signatures from all my father's siblings. My grand father had two sons and one daughter. At present we have no good terms with our aunt. so we cannot get her signature now. Please suggest me how do i proceeed now.


The bank is treating it as a claims case. You can file a written claim with the bank with copies to bank's controlling office under registered post. In case of non response, take up with banking Ombudsman


Dear Vijay,

since your grandfather had two sons and one doughter, One of their son would be your father. so you must have their death certificate. Tell your uncle and aunt and try to convince them after the issue is revolved they will also get share in your grandfather's property. I thing they will get convinced and your issue will get resolved.



Mr. Gupta and Mr. Dhulkhedkar have given valuable advice. Kindly follow it.

It is felt that your transactions with the bank and the response of the bank are verbal.

To whom bank has issued acknowledgment of the collateral documents? If it is you {borrower} then bank may discharge itself by handover the documents to you. Bank may ask to indemnify it.

The borrower has repaid the loan hence the borrower, guarantor, should stand discharged, and NOC, CIBIL status, collateral etc should be returned to borrower at once.

If all legal heirs are willing to indemnify the bank there is no situation.

Did you utter to the BM in any of the meetings that your relations with your aunt are not good? If yes all antennas of all staff in the bank shall be up.

BM of the bank might have sought and obtained legal opinion in your case and might be stating as per legal opinion by the bank to him.


The banker{s} in your case seem to be assuming a situation {hypothetical} if some relative of borrower/legal heir of grandfather objects why the ownership document of the property were returned to borrower, and apparently bank has become adamant.

However bank should not hesitate to issue its contentions and guidelines in writing.

Banks avoid issuing written communication to avoid onus of situation falling on it.Bank may try to avoid writing to you till the time you are avoiding to write to the bank.



RBI has advocated policy on matters to the bank




23.      Release of other assets of the deceased borrowers to their legal heirs

Banks      had    represented       that   the   principle    of   not   obtaining     succession


certificates etc. could be extended for settlement of claims in respect of other


assets   of   deceased   customers   including   securities   held   against   advances


after    adjustment      thereof.     Banks     are   advised      not   to   insist  upon     legal


representation for release of other assets of deceased customers irrespective


of the amount involved.”


“Banks      may,    however,     call   for  succession     certificates    from    legal   heirs   of


deceased borrowers in cases where there are disputes and all legal heirs do


not join in indemnifying the bank or in certain other exceptional cases where


the   bank   has   a   reasonable   doubt   about  the   genuineness   of   the   claimant/s


being the only legal heir/s of the borrower.”

Banks are under " Code of committement to Customers'. Hence bank should not hesitate to show and provide copy of the relevant rules and policies to customer, it is following in your case.

You may submit a written representation under proper acknowledgment to the BM {Be specific} and mention that you have represented to the bank on dated…….and dated… has affirmed that NOC and collateral documents shall not be returned although as per verbal demands of Mr/Ms………..designation….dept……….address you have already complied and supplied the following……… {Mention details} and raise your demand to supply you the NOC, CIBIL report {affirm charges if any shall be paid by you by cheque}, and collateral documents, in next say…7 days by hand to you in bank. If the BM does not comply or respond you may escalate to Nodal officer/Chairman of the bank under proper acknowledgment. Let the bank reply in writing. Based on the reply of the bank you shall a ground and reason to proceed.


You may refrain from sharing the residential address of the any aunt/uncle etc, till response of the bank.

The customer should record such transactions {audio/visual} for use at appropriate time in appropriate forum, and keep evidence/witness.


Attached File : 162195127 deceased depositor account 57cs010709 full.pdf downloaded 74 times
legal practitioner

thanks to Kumar Sir really knowledge enhancing suggestation




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