The Hindu : Business : Banks asked to settle claims of deceased depositors

Online edition of India's National Newspaper
Friday, Jun 10, 2005

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Banks asked to settle claims of deceased depositors

MUMBAI: The Reserve Bank of India (RBI) has asked banks to release promptly the balance amounts in the deceased depositors' accounts to survivors, named in the "either survivor or nominee" clause without insisting on a succession certificate, probate or obtaining indemnity or surety from survivors.

These funds should be released irrespective of the amount standing to the credit of the deceased account holder, the RBI said in a statement here on Thursday.

Banks should use simple procedures to release the balance amount in the deceased depositors' accounts, which operate under "either or survivor" clause or with nomination facility.

For accounts which do not have either or survivor clause nor have nomination, banks should fix minimum threshold limit upto which they could release the balance amount in these accounts after obtaining a letter of indemnity and without insisting upon production of any other document, it said.

In the case of term deposits of the deceased depositors, banks should allow premature termination without any penal charge in the event of the death of the term deposit holder.

Banks should settle claims and release the payments to the "survivor" within 15 days from the receipt of the claim on production of proof of death of depositor and suitable and satisfactory identification of the claimant, the statement added. — PTI

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