Nominee for fixed deposit

you are entitle for the amount of F.D.from the bank unless some sister and brother goes to the court for the share and the bank receives bank order.

You are a nominee of your mother`s funds, and not sole heir. Nomination means person taking in trust - that is your mother trusted that you will fairly deal with the funds. You are liable to pay to others as per Law of succession.

If there was a will and you were the beneficiary then you would be entitled to the self earned asset of your deceased mother. However you're just a Nominee, a trustee of the funds, and expected to safeguard till such time as the legal heir or beneficiary can be determined. Bank will release the funds to the nominee mentioned. Once you get the fund you should distribute equally among your 2 sisters and 1 brother. Else a criminal proceeding will be initiated against you and your reputation will be at stake. Beside court will direct you to distribute the fund equally. In any case you have to distribute equally so its better prepare a deed of settlement and give the shares to them.

No, you cant retain whole FD amount with you

No, you cannot take entire amount of the FD.

No you will entitled to only one share. Nominee as per law has to collect the same and disburse among the legal heirs .

Regard

Rajeev
RJ Associates
Trivandrum

RBI/2004-05/490
DBOD.No.Leg. BC.95 /09.07.005/2004-05

June 09, 2005

To
The Chairman/CEOs of All the Scheduled Commercial Banks
(Excluding RRBs)

Dear Sir,

Settlement of claims in respect of deceased depositors – Simplification of Procedure

Pursuant to the announcement in the Mid-Term Review of the Annual Policy of the RBI on November 3, 2003, the Committee on Procedure and Performance Audit on Public Services (CPPAPS) was constituted by the RBI with a view to improving the quality of public services to the common person. The Committee in its Report No.3 on 'Banking Operations : Deposit Accounts and Other Facilities Relating to Individuals (Non-Business)', observed that the tortuous procedures, particularly those applicable to the family of a deceased depositor, caused considerable distress to such family members. While the instruction regarding settlement of claims of the deceased depositors had been issued to the banks vide our circular No.DBOD.BC.148/09.07.007/99-2000 dated March 14, 2000 and BC.56/09.07.007/2000-01 dated December 6, 2000, the present dispensation has been reviewed in the light of the recommendations of the CPPAPS and the following instructions are being issued, in supersession of all the earlier instructions on the subject, to facilitate expeditious and hassle-free settlement of claims on the death of a depositor.

2. ACCESS TO BALANCE IN DEPOSIT ACCOUNTS

(A) Accounts with survivor/nominee clause

2.1 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.

No