Suggestion for Death Claim to Nominee of Deposit Account

Date: 21-04-2015                                             

by email and posted on website of RBI

To,

Chief General Manager
Consumer Education and Protection Department
Reserve Bank of India
1st Floor, Amar Building, Sir P.M. Road,

Mumbai 400001

Email: helpdoc@rbi.org.in

Respected Sir,

Subject: Suggestion for Death Claim to Nominee of Deposit Account

I humbly submit following suggestion as part of ease of doing business with banks in India by Indians:

            1. As per extant guidelines, nominee is to be identified by obtaining signature and seal of a magistrate or a judicial officer or a govt officer or bank officer or two customers acceptable to the Bank. Due to increased mobility of youths, it may not be always possible to obtain such signatures on claim form by nominee. At times such officers may not know the nominee personally. Nominee may be residing at distant place, from bank branch, where his parents may have accounts.

I suggest that in addition to above condition, following options be considered:

A]. Claim form should be accepted if countersigned by a public notary also.

B]. Nominee may be allowed to establish his identity through submission of self attested photocopies of documents prescribed for Proof of Identity and Proof of Address for KYC. Paying Bank officer should verify originals [if nominee visits personally] or Bank should accept photocopies attested by a gazetted officer or notary or bank manager with his seal. At times such officers may not counter-sign claim form but would be ready to attest photocopies based on originals. In case if aadhar card/number is submitted by nominee, then paying bank can check its genuineness by referring to on-line aadhar authentication link, without insisting for other attested papers and match with the details given by nominee.

C]. Bank should not insist that nominee should personally visit the Bank for collecting claim amount. Bank should accept forms submitted by post with prescribed papers [original death certificate, pass book or TDR etc]. Claim amount be paid by account payee draft to be sent by post or through RTGS/NEFT for credit to nominee’s account.

D]. Nominee may be required to affix his photograph with cross signature on claim form and may also submit cancelled cheque of his account if claim amount is required by RTGS/NEFT.

E]. For settlement of claim to nominee in respect of locker and safe custody articles [which are comparatively less in number to total nominee claims] existing guidelines should continue.

            2. I have observed that very few banks have uploaded downloadable forms for claim by nominee on their websites, though most banks have forms for non-nominee claimants on their websites. This compels nominee to visit bank for collecting blank form and then again for submission and then again for collecting cheque etc. If downloadable form is on website of concerned Bank, then it can be downloaded, completed with necessary papers and submitted to the bank in person to collect local cheque/DD in an hour or so or advise bank to remit claim amount by post by local cheque/DD. The downloadable form should contain complete step by step instructions to complete required formality.

I hope RBI will consider my suggestion positively.