Key Points
However, in case of demise of one of the Joint holders premature withdrawals poses a challenge as banks tend not to follow the survivorship clauses, he points out...
This, however, comes with a caveat that banks can allow premature withdrawals provided they have taken a specific joint mandate from the depositors for the said purpose, Mr. Dutta said...
The RBI in its August 16, 2012, circular, aligned the terms on premature withdrawals, as stated in its November 2011 notification, to be incorporated in its circular dated June 9, 2005, and asked the banks to include specific joint mandate from the depositors for the purpose...
The RBI committee for review of Customer Service Standards in regulated entities in its report has also pointed out several cases of hardship faced by nominees / legal heirs in closing the accounts held by deceased deposit holders of banks...
Even in cases where nomination is available, banks were found to be insisting on submission of unnecessary documents, for example, an undertaking to indemnify the bank in case of any legal dispute arising in the future, succession certificate, etc., which are specially prohibited by regulation, it said.. Several existing accounts do not have nominations at present and obtaining nomination in deposit accounts may be made mandatory within a reasonable time frame say three years, the report suggested...
