Bank - Questions & Answers

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Generally, the details of one’s bank account are not disclosed by the bank to any other person. However, if it is a joint account with either or survivor instructions for account operations, the other account holder of the joint account can enquire the details of the bank account. Let it make clearer with an example. There is a joint account in the name of husband and wife. Husband who operates the bank account has passed away. Wife is totally unaware of the banking activities of the husband. She has no idea about the bank account details. So in this case since wife is a joint account holder, she can get all the details of that bank account from the bank. But she can operate the account only when the account is having the operating instruction of either or survivor. She cannot operate the account when the account is having operating instruction of “Joint Operation‘’.

If both the joint account holders are no more, nominee of the account has authority to have all the details of the account from the bank. Most of the bank accounts have nominees. Banks always insist at the time of opening of account that the nomination must be done in all the accounts.

In case of single account also, nominee of such account can have all the details of the account from the bank. However, Bank will ask for a written request along with death certificate of the account holders and identification proof of the nominee like Aadhar or Voter Id Card etc

If there is no nominee in such account, the legal heir of the deceased person can request the bank to provide the account details. In this situation, legal heir should submit a request with Death Certificate along with required proof like the Will of deceased person and Succession Certificate.

In such case the nominee of the bank account of the deceased person can withdraw the amount after submitting the required documents like death certificate of the account holder, Proof of identity of the nominee like Aadhar card etc with application requesting the bank to close the account of the deceased person and transfer the amount to nominee’s Bank account.

In case the nominee is a minor, the account details available with the bank must be having the guardian’s name and identity as well since the minor cannot operate the account. Hence such guardian will need to move the application on behalf of the nominee for transfer of funds lying in the deceased holder’s account to the account of the nominee. Papers required to be submitted along with this request include Identity proof like Aadhar etc of minor nominee and Guardian, bank account details of minor nominee under the guardianship of the same guardian and Death Certificate of deceased sole account holder. An account in the name of nominee will be required under the same guardian and the amount will be then transferred to such nominee account. In future if any money is required to be withdrawn from such account of the nominee, it will be withdrawn by the guardian by submitting a declaration in the specified format of the bank to the effect that the proceeds of withdrawal are to be used for and on behalf of the minor only.

If the funds lying in such bank account is amount is not substantial, all the legal heirslike wife, son, daughter etc should authorize one person among them in whose account money needs to be transferred from the account of deceased person. What is substantial amount has not been defined. It varies from bank to bank. However normally any amount above Rs one lac is treated as substantial amount.

In such situation, a joint application by all the legal heir is submitted to the bank on a prescribed format requesting the bank to transfer the amount lying in the bank account of deceased sole account holder to the bank account of legal heir they have authorized for this purpose. This format is provided by the bank itself. Papers required to be submitted along with this request include Identity proof like Aadhar etc of all legal heirs, bank account details of authorized legal heir and Death Certificate of deceased sole account holder.

In some cases bank may insist for two guarantors for making such payments but it depends on the discretion of the bank authorities.

If the funds lying in the account of deceased person is substantial, the bank will ask the legal heirs to bring the Succession Certificate from Court. Succession Certificate is issued by the court. After producing the court orders, bank will make the release the funds lying in the account of Deceased.

It is important to note that submission of death certificate issued by the designated government authority i.e. the Municipal corporation of that city is a must. Death certificate issued by a doctor or nursing home is not accepted by the bank.

Normally at the time of opening of an account by the depositor, Bank registers details of nominee like his name, age, address, relation of nominee with the account holder.

When nominee claims to receive the funds lying in the account of the deceased Account Holder, bank will establish the identity of the nominee by verifying the documents like Aadhar card, Pan card or other specified documents. The nominee has to submit an affidavit also on the format prescribed and provided by the bank. After completing due formalities, the bank releases the funds to the nominee.

Sometimes bank may ask documents to verify the relation of the nominee with the deceased person. The relation of wife, mother, father, son, and daughter can be easily established but relationship of niece, nephew, son in law etc is comparatively difficult to establish. In such cases, bank will take extra precaution before release of funds to nominee.

Yes, it is necessary for nominee to have a bank account in his own name. Please note carefully that the bank account in the name of nominee should have been opened before the date of issue of cheque by the bank of deceased person towards release of funds lying in deceased’s account. So you must open bank account in your name before issue of cheque by bank of your parents.

No cash payment is made by the deceased’s bank to the nominee. Bank transfers the amount to the nominee account directly or can make an account payee cheque in favor of nominee.

There is no established provision or rule issued by the bank to facilitate such customers suffering from covid.

Family members of the admitted person can request to the bank to find out a way to take care of such unprecedented situation. They can request the bank tomake payments directly to the hospital from the account of the patient. For this bank may seek verification from Hospital regarding the identity and illness of the patient and his pending hospital bill amount.

Let us understand it with an example. A person is admitted in the ICU due to covid. His son made a request in writing to the bank that my father is admitted in the hospital and not able to sign the cheque for the hospital bill payment. The son has given the bank account details of his father, attached the documents related to hospitalization, account details of the hospital and other necessary information in the request application. He requested the bank to make the payment from his father’s account to the hospital as per the attached bills in the name of his father. Bank may seek confirmation from the hospital regarding patient identity ( for example his Aadhar No, PAN no ) and cross checks these facts from the record of bank.

However, Bank may or may not consider the request after getting there required verification .It is at the discretion of the bank officials.

Whenever a bank account has a minor nominee, there must be a guardian/custodian of the nominee also. In the case of a minor nominee in the bank, the details of the custodian are also to be given in the nomination form.The identity proof like adhar card of the custodian is recorded by the bank at the time of processing the nomination. The custodian has to submit his own documents on behalf of the minor for processing of transfer of the funds from the deceased account to minor’s account.

One more important thing is that a bank account on the name of minor is a must. Funds will be transferred to that account only, not in the account of the custodian. If the custodian withdraws any amount from the minor’s account, He has to give a declaration that the money withdrawn has been spent for the minor. So an account must be opened in the name of the minor under the guardianship of the custodian. The custodian will have only the operating right of the account.

This will continue till the minor account holder attains the majority. There after the account holder can handle the account independently.

If there is a registered will and the funds lying in the bank account of the deceased account holder is not substantial, there is no need of succession certificate for the purpose of transfer of funds from the account of deceased person to the legal successor’s account. If the amount is large, bank may ask for court orders.

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