Advice in case of death of account holder and Nominee issue.
26-Oct-2023 (In Banking / Finance Law)
My Husband's paternal uncle has made an FD of Rs 20 lakh and have nominated my husband in it. He expired in Jan'17. When my husband approached the bank with his uncle's death certificate, they informed us that in the column of nominator's signature, his uncle's signature is missing. When they went to bank for nomination the bank's executive has guided them to fill and sign the form. Where all the KYC form were filled and signed by my husband and his uncle except the DA1 form. This is due to negligence of the bank's executive. Now the bank is denying to give the money and not acknowledging their mistake. Pls suggest.
In my opinion.
This is an advice to be given and mention in detail. Its a routine and normal problem always arises. Its not a banks mistake at all as there is no evidence that bank did not ask for getting the form signed.
We need to execute the legal documentation in front of Hon JMFC.
You need to accept that the said nomination is not registered.
As the banking business of deposits is limited to the custodian of the deposits. Hence bank cant deny to pay back the deposit amount.
Only the deposit title must be cryatalised and clear on documents.
You need to execute routine documentation to establish the nomination as the dead person's will and wish is not on record and we cant lodge such complaint or file any petition in respect of the incomplete documents as you were not the party at the time of deposit.
This is an advice to be given and mention in detail. Its a routine and normal problem always arises. Its not a banks mistake at all as there is no evidence that bank did not ask for getting the form signed.
We need to execute the legal documentation in front of Hon JMFC.
You need to accept that the said nomination is not registered.
As the banking business of deposits is limited to the custodian of the deposits. Hence bank cant deny to pay back the deposit amount.
Only the deposit title must be cryatalised and clear on documents.
You need to execute routine documentation to establish the nomination as the dead person's will and wish is not on record and we cant lodge such complaint or file any petition in respect of the incomplete documents as you were not the party at the time of deposit.
Dear Client,
As per the facts stated by you, kindly speak with the bank manager and ask for the solution. If still bank is not ready to co-operate, you can approach Advocate for proper legal advice along with all you documents and accordingly matter can be taken further.
Expert Jurist LLP
As per the facts stated by you, kindly speak with the bank manager and ask for the solution. If still bank is not ready to co-operate, you can approach Advocate for proper legal advice along with all you documents and accordingly matter can be taken further.
Expert Jurist LLP
As you are aware, in the case of deposit accounts where the depositor had utilized the nomination facility and made a valid nomination or where the account was opened with the survivorship clause ('either or survivor', or 'anyone or survivor', or 'former or survivor' or 'latter or survivor'), the payment of the balance in the deposit account to the survivor(s)/nominee of a deceased deposit account holder represents a valid discharge of the bank's liability provided :
a. the bank has exercised due care and caution in establishing the identity of the survivor(s) / nominee and the fact of death of the account holder, through appropriate documentary evidence;
b. there is no order from the competent court restraining the bank from making the payment from the account of the deceased; and
c. it has been made clear to the survivor(s) / nominee that he would be receiving the payment from the bank as a trustee of the legal heirs of the deceased depositor, i.e., such payment to him shall not affect the right or claim which any person may have against the survivor(s) / nominee to whom the payment is made.
2.2 It may be noted that since payment made to the survivor(s) / nominee, subject to the foregoing conditions, would constitute a full discharge of the bank's liability, insistence on production of legal representation is superfluous and unwarranted and only serves to cause entirely avoidable inconvenience to the survivor(s) / nominee and would, therefore, invite serious supervisory disapproval. In such case, therefore, while making payment to the survivor(s) / nominee of the deceased depositor, the banks are advised to desist from insisting on production of succession certificate, letter of administration or probate, etc., or obtain any bond of indemnity or surety from the survivor(s)/nominee, irrespective of the amount standing to the credit of the deceased account holder.
a. the bank has exercised due care and caution in establishing the identity of the survivor(s) / nominee and the fact of death of the account holder, through appropriate documentary evidence;
b. there is no order from the competent court restraining the bank from making the payment from the account of the deceased; and
c. it has been made clear to the survivor(s) / nominee that he would be receiving the payment from the bank as a trustee of the legal heirs of the deceased depositor, i.e., such payment to him shall not affect the right or claim which any person may have against the survivor(s) / nominee to whom the payment is made.
2.2 It may be noted that since payment made to the survivor(s) / nominee, subject to the foregoing conditions, would constitute a full discharge of the bank's liability, insistence on production of legal representation is superfluous and unwarranted and only serves to cause entirely avoidable inconvenience to the survivor(s) / nominee and would, therefore, invite serious supervisory disapproval. In such case, therefore, while making payment to the survivor(s) / nominee of the deceased depositor, the banks are advised to desist from insisting on production of succession certificate, letter of administration or probate, etc., or obtain any bond of indemnity or surety from the survivor(s)/nominee, irrespective of the amount standing to the credit of the deceased account holder.
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
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