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TUSHAR (MANAGER (FACULTY))     05 November 2012

Succession certificate

An account holder had died nearly 8 months back. Now his son comes to bank with a succession certificate issued by a competent court. bank ask the son to give a copy of death certificate. son refuses arguing that succession certificate itself is a proof of death and bank cannot ask for death certificate. Can bank insist on death certificate before making payment of all the accounts of deceased?


 6 Replies

Arvind Singh Chauhan (advocate)     05 November 2012

If there are words on Succession Certificate about the death of person, bank should not insist on this. But it depends on it's departmental rules and formalities.

Surendra Gupta (Banker)     06 November 2012

Original copy of the death certificate issed by competant authority is a MUST to settele claim case by bank

narendra.s.p (Chief Manager(Law))     06 November 2012

Can any court grant a Succession Certificate without teh proof of Death. Succesion Certificate is Legal representation and teh Bank is bound to pay the claim as per the Succession Certificate. Failure of which the heir or Claimant can approach banking Ombudsman or file contempt petition in the court which has granted the Succession Certificate.

Some bankers use their uncommon sense [ nonsense] in rendering customer service and land up in trouble 

TUSHAR (MANAGER (FACULTY))     06 November 2012

So I have received three different answers. which one is valid? Afterall ther must be a clearcut 'yes' or  'no'.I know that succession certificate is issued only after the honourable court is satisfied about the death of person. But there are a number of cases when people later on have been found to be alive. So my question was about the responsiblity that may accrue against the bank in such eventuality. Is bank absolved of all its responsiblity after obeying the succession certificate?

narendra.s.p (Chief Manager(Law))     07 November 2012

Please refer RBI Master Circular on customer Services in Banks dated.02/07/2012 paragraphs 23 read with paragraph 20.2

surjit singh (Assistant)     11 November 2012

Mr Narendra reply is totally correct supported by legal logic. Yes the Bank is absoved of all the responsibility.

The court persumes a person to be dead when for 7 years his whereabouts are not know at all from any means, so in that case even if the succession certificate or death certificate is isused  the bank will ask you to sign a bond of indemnity.

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