Rules Gov­ern­ing Re­pay­ment Clauses

Consumer Voice - - Bfsi Guide -

Bank de­posit ac­counts are opened with the re­pay­ment/sur­vivor­ship clause as un­der: • Ei­ther or sur­vivor Un­der this clause, the de­pos­i­tor wants that the bank should in­voke this clause and pay the pro­ceeds to ei­ther of them on ma­tu­rity of the de­posit or on the death of the de­pos­i­tor. Con­sumers need to un­der­stand that this clause is meant only for de­posits held by more than one de­pos­i­tor but not more than two per­sons. The role of ‘nom­i­nee’ arises only in the case of death of both the de­pos­i­tors. • Any­one or sur­vivor Un­der this clause, the de­pos­i­tor in­structs the bank to dis­pose of the pro­ceeds to any one of the de­pos­i­tors in­di­vid­u­ally on ma­tu­rity of the de­posit or to the sur­vivor amongst the de­pos­i­tors on death of any one of the de­pos­i­tors. The role of ‘nom­i­nee’ arises only on the death of all the de­pos­i­tors. • For­mer or sur­vivor/lat­ter or sur­vivor Un­der this clause, the de­pos­i­tor in­structs the bank to pay the pri­mary de­pos­i­tor on the ma­tu­rity of the de­posit and to the sur­vivor on the death of the for­mer\lat­ter as the case may be. The role of ‘nom­i­nee’ arises only on the death of all the de­pos­i­tors.

Ba­si­cally, RBI says that ‘in the case of a joint de­posit ac­count, the nom­i­nee’s right arises only after the death of all the de­pos­i­tors’. It also says, ‘…there can­not be more than one nom­i­nee in re­spect of a joint de­posit ac­count…’

Mak­ing Claim As a Nom­i­nee

Once the death of the de­pos­i­tor is known to the bank, the bank, as per ac­cepted bank­ing prac­tices, flags the ac­count by block­ing any deb­its to that

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