Respected sir,
Very valuable information. I was under the impression, death certificate of T D
R primary holder is sufficient.
If small amounts, it is best to close T D Rs prematurely and credit to SB
account when both are alive, but ailing.
Now if the second applicant dies? Whether the primary account holder has to
wait?
Gopalakrishnan
On Wednesday, 20 September, 2023 at 01:00:56 pm IST, SRIRAMAJAYAM
<[email protected]> wrote:
*For kind attention of all the Joint-FD holders:*
Most of us have joint FDRs with “either or survivor” operational instruction.
We feel that by having joint operational instruction, we will never face any
operational difficulty in case of any contingency. Our general presumption is
that the other surviving joint holder of FD will have the same operational
powers as we enjoy when both of us are alive.
But this assumption of ours is far from reality. In the absence of knowledge
about the RBI guidelines, we simply believe, that in case of death of any one
of the joint FD holders, the surviving one can get it even pre- matured as per
his/ her own convenience. Till yesterday, I was also under the same impression.
Yesterday, the family members of one of our society flat met me at Union Bank
and shared their problem of not getting the FDRs of their parents closed pre-
maturely.
I decided to help them in sorting out the matter and met the Bank Manager along
with them to persue him to allow the pre- mature closure of the FDS. But when
the Manager showed me the RBI rulings regarding pre- mature closure of FDRs, I
was surprised and shocked.
As per RBI Guidelines, in case of death of any one of the joint holder of FDR
(even having valid nomination also), the surviving joint holder do not have
free access to the funds by getting it closed pre- maturely as per his/ her
own choice. He/ She can get the amount only at the time of maturity of the FDR
without any one's interference. Before the maturity date, for getting it
closed, consent of all the legal heirs of the deceased FDR holder is a must.
Means the joint holder does not enjoy the right to get the FDRs closed before
the due date of maturity. The surviving FD holder is entitled to get the
proceeds only at the time of maturity of the FDR and not before that.
So, if we have long duration joint FDR, in case of demise of one of the joint
holder, the surviving one can not get the FDRs closed earlier without the
consent of all the legal heirs of deceased person. This provisions restrict the
right of any surviving joint holder to use the funds freely in case of need. If
any one of the legal heirs has objection or not instantly available, *the
surviving FD holder will have to wait till the maturity date or get the consent
of all the legal heirs.*
*Further, never leave your joint holding FDR without a nomination, as he will
be the one to claim the FDR proceeds in case of any contingency with both the
FD joint holders; otherwise the consent of all the legal heirs will be
required to claim the amount*.
*One thing is also very clear; that nominee is only the custodian of the
proceeds - not the owner of the amount receivable by him/ her. If we wish to
make the nominee as the sole claimant of FDR proceeds after our death, we
should clearly mention this fact in our 'Will' also to avoid any dispute.*
Thanks to my Banker friend for sharing this useful information..
As recd. 🙏🙏
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