Joint account: bank demanding claim forms to remove deceased holder

977 votes

In case of a joint bank account, the applicable procedure depends on the mode of operation (Either or Survivor / Former or Survivor). As per RBI Master Circulars on Customer Service and banking practices, where the surviving holder does not seek to withdraw or claim the balance but only seeks continuation of the account in her sole name, banks cannot insist on claim forms meant for settlement of deceased claims. Annexures such as claim forms or receipts for unspecified amounts are ordinarily required only where the balance is being claimed or paid out. Arbitrary freezing of the account and refusal to disclose internal policy or RBI circulars amounts to deficiency in service. You may escalate the issue in writing to the Bank’s Grievance Redressal Officer, followed by a complaint before the RBI Banking Ombudsman. If financial loss, cheque bounce, or investment default has occurred due to wrongful freezing, you may seek compensation for damages under consumer law.

Advocate Bhumika Vijay Bajaj LawRato

687 votes

Yes, for deleting the name of the deceased owner of the bank account the banks have a procedure pursuant to which one is required to fill up the Annexures and submit requisite documents. In case of any issue you may contact the banking ombudsman for the same. Feel free to contact me for seeking any legal advice/assistance as regards the same.

Advocate Prerna Shukla LawRato

868 votes

As the surviving holder of a joint current account, you are not a claimant to the balance but a continuing account holder. Where the mandate is “Either or Survivor” or “Survivor,” the bank is legally bound to allow continued operation of the account on submission of the death certificate and completion of KYC. Demanding claim forms such as Annexure 2 and 4 and a blank or unspecified receipt (Annexure 12) merely to delete the deceased holder’s name is arbitrary, unlawful, and contrary to the directions of the Reserve Bank of India. RBI customer service guidelines require banks to simplify procedures, avoid harassment of survivors, and prohibit freezing of accounts where survivorship is clear. Insisting on claim documents and a blank receipt in a non-claim situation and refusing to disclose the governing policy amounts to deficiency in service and unfair banking practice. Freezing the account leading to bounced investments makes the bank liable for consequential damages. You may issue a legal notice demanding immediate deletion of the deceased holder’s name, unfreezing of the account, disclosure of policy, and compensation. Remedies include a complaint before the RBI Banking Ombudsman, a civil suit for declaration, mandatory injunction, and damages, and proceedings under consumer law for deficiency in service. In case of continued delay or arbitrary conduct, a writ petition before the High Court is maintainable seeking a writ of mandamus directing the bank to comply with RBI directions and permit continued operation of the account.

Advocate Moksh Jain LawRato

763 votes

Dear Madam, If the account was held under an “Either or Survivor” mandate, you are legally entitled to operate and continue the account upon submission of the death certificate. Claim settlement forms are ordinarily required when payment of balance is sought. If you are merely requesting deletion of the deceased holder’s name, the bank must justify the legal basis for insisting on such annexures. Signing any blank or unspecified receipt is not advisable and may expose you to legal risk. If the account has been frozen without lawful justification and this has resulted in financial loss, you may seek remedy through: 1. Written grievance to Branch and Nodal Officer 2. Complaint under RBI Integrated Ombudsman Scheme (if unresolved within 30 days) 3. Consumer Commission for deficiency of service and compensation Please share: • Account mandate type • Copy of communication from bank • Whether any legal heir dispute exists After reviewing documents, appropriate legal notice can be issued. Regards, Adv. Jay Vijay Chauhan

Advocate Jay Chauhan LawRato

646 votes

If account was “either or survivor”, bank should allow continuation on death certificate & KYC. Blank receipt is improper. Complain to bank grievance cell, then RBI Ombudsman. Damages can be claimed for deficiency in service.

Advocate Pankaj Bajaj LawRato