Settlement
of dues in Deceased Deposit Account :
If the depositor
has registered nomination with the bank, the balance outstanding
in the account of the deceased depositor will be paid
to the nominee after the bank is satisfied about the identity
of the nominee, etc.
The above
procedure will be followed even in respect of a joint
Account where nomination is registered with the bank.
In a Joint
Deposit Account, when one of the Joint Account Holders
passes away, the bank is required to make payment jointly
to the legal heirs of the deceased person and the surviving
depositor(s). However, if the Joint Account holders had
given mandate for disposal of the balance in the account
in the forms such as "either or survivor, former
/ latter or survivor, anyone of survivors or survivor,
etc.," the payment will be made as per the mandate
to avoid delays in production of legal papers by the heirs
of the deceased.
In the absence
of nomination and when there are no disputes among the
claimants, the bank will pay the amount outstanding in
the account of the deceased person against joint application
and indemnity by all legal heirs or the person mandated
by the legal heirs to receive the payment on their behalf
without insisting on legal documents up to the limit approved
by the Bank's board. This is to ensure that the common
depositors are not put to hardship on account of delays
in completing legal formalities.
Interest
Payable on Term Deposit in Deceased Account :
In the event
of death of the depositor before the date of maturity
of deposit and amount of the deposit is claimed after
the date of maturity, the bank shall pay interest at the
contracted rate till the date of maturity. From the date
of maturity to the date of payment, the bank shall pay
simple interest at the applicable rate obtaining on the
date of maturity, for the period for which the deposit
remained with the bank beyond the date of maturity; as
per the Bank's policy in this regard.
However,
in the case of death of the depositor after the date of
maturity of the deposit, the bank shall pay interest at
Savings Deposit rate (as on the date of maturity) from
the date of maturity till the date of payment.
