Bank transaction from deceased father's account

Why is your uncle threatening so? Under what sections of law will he complain? Clearly, there is no fraud committed. The chq was passed to honour the medical bills.

As for the Bank, the Bank can only stop operations in the a/c when it has knowledge of the a/c holder's death. In this case, it seems that the Bank had no knowledge of the death, so the Bank is correct in passing the chq. Nothing will come out of any case that is lodged against the Bank.

I feel Mr Prasim is correct so far the question of knowledge of the bank about the death of the account holder is concerned. But one thing is to be noted is that the date on the cheque presented to the hospital. If the date of the cheque is after the death of your father then I think there is a question to be raised, because it was in your knowledge that the person who has signed the cheque which is being presented by you before the hospital has expired. Basically it is a queston of moral obligation, and it cannot be a henious crime. You have transferred the money from your account and the person holding the account was the father.

In this case even if your uncle complains before the bank or any authority or even approach the court in that case the intention of your uncle behind this complaint will be first analysed which will ultimately lead to non-issue. I think you should not worry much in this aspect.

The banks have to keep the policies as advocated by regulators RBI/passed by its board on their websites e.g. deceased depositor policy.

Your sister has rather deposited an amount and not withdrawn any amount.

The legal heirs are the beneficiary. If legal heirs do not object and have the knowledge that your father issued cheque before his death to meet the medical expenses then what is the issue with your uncle.

Is your uncle a nominee in the bank a/c?

Even if he is the nominee, he has to act in good faith, and distribute the proceeds to the legal heirs.  

Meet the BM of the bank with well wishers, reputed and influential personalities of the locality and appraise on the facts. The BM  can pay the proceeds to legal heirs in line with deceased depositor policy.

20.4    Treatment of flows in the name of the deceased depositor

In order to avoid hardship to the survivor(s) / nominee of a deposit account,

banks      should     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:

                                          - - 58 - -

                                                                DBOD-M

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.

When the Uncle have not yet filed any type of complaint before the bank it is not necessary to meet the BM of the Bank. If you meet the Bank before any complaint being received it will complicate the matter.