Accounts with Survivor/Nominee

Clause

Prepared by - Nisha
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  There are two possibilities in a bank account maintained by a customer viz. (i)  a
deposit account is opened in a bank with a valid nomination or with the survivorship
clause like ‘either or survivor’, or ‘anyone or survivor’, or ‘former or survivor’ or ‘latter
or survivor’ etc.  (ii) A deposit account is opened in a bank without a valid nomination
or without the survivorship clause like ‘either or survivor’, or ‘anyone or survivor’, or
‘former or survivor’ or ‘latter or survivor’ etc.

 When a deposit account is opened in a bank with a valid nomination or with the
survivorship clause like ‘either or survivor’, or ‘anyone or survivor’, or ‘former or
survivor’ or ‘latter or survivor’ etc. the banks may make payment of the balance in
such deposit account to the specified nominee or survivor(s).

@ copyright TeamLease Services Ltd 2019

@ copyright TeamLease Services Ltd 2019
 The payment to nominee/survivor(s) of the deceased person would
constitute a full discharge of the bank’s liability on the compliance of the
following.

1. The death of the account holder is confirmed to the bank through

appropriate . documentary evidence (death certificate).

2. Bank has verified properly the identity of the claimant(s) and made
payments only after the establishment of the identity of the
survivor(s) / nominee to the bank’s satisfaction.

@ copyright TeamLease Services Ltd 2019

@ copyright TeamLease Services Ltd 2019
 3. The bank has not received an order from the competent court restraining the
bank from such payments.

4. The claimants (survivor(s)/nominee) must be informed clearly that they

would be  receiving payment from the bank as a trustee to the legal heirs of the
deceased depositor, i.e., such payment to him shall not affect the right or claim
which any person may have against the survivor(s) / nominee to whom the
payment is made. A letter of the undertaking shall be taken from such
survivor(s)/nominee who have received the payment from the bank.

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@ copyright TeamLease Services Ltd 2019
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