represents a valid discharge if:
o The bank has exercised due care and caution in establishing identity of survivor/
nominee and death of account holder (through documentary evidence).
o There is no court order restraining the bank from making the payment.
o It is made clear to the survivor(s) that he would be receiving payment as a trustee of the
legal heirs of the deceased depositor;
o The RBI has stated that in these cases insistence on production of legal representation is
superfluous and unwarranted. Banks should not ask for succession certificates, letter of
administration or probate. Banks should not seek to obtain any bond or indemnity.
• Where the deceased depositor has not made any nomination or the account does not
have a survivor clause banks are expected to follow a simplified procedure for repayment
to legal heirs without inconveniencing them.
• Deceased depositors may receive monies in their name. To avoid hardships banks should
either open an account styled “Estate of Shri ………….. , (the deceased)” where all
amounts received are deposited or the survivor/ nominee can authorize the bank to return
the monies received with the remark “Account holder deceased”. The survivor/ nominee
can then approach the remitter to effect payment to them.
• Banks should settle claims and release payment within 15 days from receiving claim
along with documents such as proof of death of depositor.
Closing an account
• To close an account all the account holders should write to the bank stating their intent
to close the account. They must also submit all unused cheques to the bank. Incorporated
entities and associations should also submit a copy of the resolution wherein it was agreed
that the bank account be closed.
• The bank usually asks the account holder/s to sign one cheque in blank. This is the
demand by the account holder for the balance in his account.
• All unused cheque leaves should be cancelled and returned to the bank.
• The bank may also request the customer to close his account if: