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nirav (Private)     06 September 2008

Both Signs needed in Jt A/c?

I am 2nd holder in Jt A/c with my brother. A/c operated by either of us. I applied for premature surrender of FD. Manager insists on signatures of both holders. My brother is abroad. Can Bank insist on both signs when it has allowed us either or survivor operating status.


Learning

 7 Replies

Srinivas.B.S.S.T ( Advocate)     06 September 2008

Sir your query is a bit confusing. If
you are intending to withdraw amounts from your bank (while you are
using the option of  either or survivor for your bank account)
then the bank cannot demand for the signature of the 2nd holder of the
account. But you are saying about FD. in such even on whose name the FD
is? if it held jointly then both the persons has to sign on it upon its
surrender.

J. P. Shah (RTI & CONSUMER ACTIVIST)     06 September 2008

IF A FD IN JOINT NAMES IS TO BE ENCASHED BEFORE DUE DATE, IT REQUIRES SIGN OF ALL THE JOINT DEPOSITORS [IRRESPECTIVE OF MANDATE]. HOWEVER, WHILE MAKING DEPOSIT, IF U HAVE GIVEN AUTHORITY TO THE BANK THAT ANY  ONE CAN PREMATURELY WITHDRAW OR BORROW ON FD, THEN BANK WILL PAY WITH ONE SIGNATURE EVEN BEFORE DUE DATE. ACCOUNT OPENING FORMS DO CONTAIN SUCH AUTHORITY TO BE SIGNED BY ALL THE DEPOSITORS AT THE TIME OF DEPOSIT. YOUR MANDATE OF EITHER OR SURVIVOR WILL OPERATE ONLY ON OR AFTER DUE DATE.

prof s c pratihar ( urologist &legal studies)     06 September 2008

accepting the correctness of explation of mr shah one question may arise in general banking forms for fd is there any column for such direction that a one of many in jt ac can borrow and /or do premature encashment of the instrument ?.there is generally no scope of such special direction so far public instutions are concerned.my personal view only and may not be correct.drscpratihar

N.K.Assumi (Advocate)     07 September 2008

I concur with Srinivas:

J. P. Shah (RTI & CONSUMER ACTIVIST)     07 September 2008

I WAS BANK MANAGER OF A NATIONALISED BANK FOR 20 YEARS. IT WAS NEARLY 15 YEARS BACK THAT RBI ISSUED DIRECTIVES AS ABOVE TO INCLUDE SUCH AUTHORITY IN ACCOUNT OPENING FORMS FOR FD AND RBI HAD PRESCRIBED WORDINGS ALSO. BANK [INCLUDING MY BANK] ALSO INCLUDED SUCH AUTHORITY, WHILE PRINITING NEW FORMS. IF OLD FORMS WERE TO BE USED, SUCH AUTHORITY WAS TO BE OBTAINED ON SEPARATE PAPER, IF DEPOSITORS SO DESIRE.  

nirav (Private)     15 September 2008

SHri  Shah....if you dont mind pl give your email id...I am based in Gujarat and am in Insurance Co.

Prasun Chandra Das (Banker)     01 May 2012

mr j p shah is absolutely right.


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