Q : - What is the procedure for claim settlement in case of deceased accounts, if nomination has been registered?

Ans: - When Nomination is registered with the bank, the nominee can apply to the Bank, giving full details of the accounts of the deceased depositor. On receipt of the claim from the nominee, the branch will verify the photocopy with the original Death Certificate, Nomination number as registered in CBS, Nomination register.

Signatures of two witnesses of good standing and integrity who are acceptable to the Bank should also be provided on the application. The witness can be any of the following:

  • Magistrate or Judicial official

  • Any Officer of the Central / State Government or Any Officer of the Bank.

  • Any two persons acceptable to the Bank.

Q : - What if nomination is registered in favor of a minor?

Ans: - If the nominee is minor, the person appointed by the deceased account holder to act on behalf of the minor until he/she attains majority has to submit an application to the Bank, giving full details of the accounts of the deceased depositor.

Q : - What is the procedure for claim settlement in case of deceased accounts, if the deceased customer's Accounts is having Survivorship Clause? (Either or Survivor, Former or Survivor, Later or Survivor and Any one or Survivor etc.)

Ans: - In case of deposits in Joint Names with Survivorship Clause (E or S, F or S, L or S and Any one or Survivor etc.)

  • If the depositor dies, then it is sufficient for the survivors to make a simple application along with a photo copy of the Death Certificate for record of the Bank.

  • For time deposits, the survivors can continue with the account by deleting the deceased depositor's name from the TDR/STDR / Other FDs.

  • In case of Current Account/ Savings Bank Account, the survivors are advised to transfer the balance to a new account in their own name and Bank asks for a fresh account opening form.

  • If the survivors want to close the accounts, they can do so. In case of term deposits, on request from the legal heir(s)/representative(s)/nominees, the deposit can be split into two or more receipts individually in the name of legal heir(s)/representative(s)/nominees. It shall not be construed as premature withdrawal of the term deposit for the purpose of imposing penalty clause for premature withdrawal provided the period and the aggregate amount of the deposit do not undergo any change. The interest shall be paid at the rate applicable for the period actually run.

Q : - What if the joint deposit is without survivorship clause?

Ans: - When a joint account holder dies, in the absence of a clause like E or S, F or S, L or S, the balance can be paid jointly to the survivors and the legal heirs of the deceased.

Example: If an account in the joint name of A and B, and if A dies, the balance will not be paid to B alone. It has to be paid to B and to the legal heirs of A jointly. The settlement can be made to the legal heirs of A either through legal representation or without legal representation as the case may be.

Q : - What if the deceased customer's Accounts is having neither Survivorship Clause nor Nomination?

Ans: - In a deceased account where there is neither Survivorship clause nor Nomination, our Bank delivers the assets only to the legal heirs.

As disposal with legal representation is time consuming, to improve customer service, our Bank has devised a system of settling the accounts without production of legal representation on the basis of Indemnity – cum – Affidavit. This is applicable only when:

  • The customer has died INTESTATE i.e. without a WILL and

  • There are no disputes among the legal heirs and all the legal heirs (other than those who have furnished a Letter of Disclaimer) join in indemnifying the Bank and there is no reasonable doubt about the genuineness of the claimant(s) being the only legal heirs.

Q : - What is a Legal representation?

Ans: - A legal representation is one that is granted by a Court of Law entitling the legal heirs of the deceased to collect the debts/securities or assets of the deceased. Bank may opt for settling the matter through legal representation. The following documents represent different forms of legal representation:

  • Succession Certificate

  • Wills and Probate

  • Letter of Administration

  • Order of the Administrative General attached to the High Court

Q : - What are the documents required for disposal of deceased accounts without legal representation?

Ans: - Depending on the amount of claim, the following documents need to be submitted.

  • Photocopy of Death Certificate (original shall be verified by the bank).

  • KYC details of all the legal heir(s)

  • Account details of the Claimant(s) (If available)

  • Revised Claim Form duly filled and signed by the Claimant(s), other than those who signed the letter of disclaimer.

  • Letter of disclaimer

  • The Declaration in the Revised Claim Form regarding the Legal Heirs(s) of the deceased is to be signed by-

    • One independent person well known to the family of the deceased but unconnected with it and acceptable to the Bank OR
    • By any account holder of the Bank known to the family of the deceased but unconnected with it OR
    • By any Govt. Official whose signature is verifiable by the Bank.
    • Such Declaration has to be sworn as an Affidavit before the Judicial Magistrate or Notary Public as per COS-539, when the settled amount is more than Rs 5.00 lakhs.
  • Stamped Letter of Indemnity from the Claimant(s) plus one Surety good for the amount or two Sureties jointly good for the amount. Any legal heir(s) who has signed the Letter of Disclaimer in favour of other legal heir(s) may stand as surety if he/she is independently good for the amount of claim. Production of Surety should not be insisted upon when the settled amount is not more than Rs 5.00 lakhs.

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