If Account Holder Dies Steps To Follow: Many have lost their loved ones during the Corona period. They also had Jandhan or Savings Account. But after his death, uneducated, poor farmers and labor heirs had to face many difficulties to withdraw money from his account. After the death of the account holder, it is not known who can withdraw money from their account, who has the right to it, and what is the procedure. Since the implementation of Jandhan Yojana in the country, more than 45 lakh people have started savings accounts. Banking services have now reached even remote areas of the country. According to this, the poor, laborers, and farmers are getting the benefit. Most of these account holders are uneducated and do not know the rules of banks. Therefore, in case of death of the account holder, who can withdraw the amount from his account or who has the right, it can be stated here.
Do not withdraw money from the account
In case of the death of an account holder, the bank should be informed immediately. Some formalities have to be completed after giving notice to the bank. Therefore, the heir or relative should not make any transaction from their account. If the relatives of the deceased know the password of their ATM, they should not withdraw money from it.
Withdraw money if you have a joint account
If two persons have a joint account, in case of the death of one of the two, the other account holder of the joint account can withdraw the money. In addition, the death certificate of the deceased joint account holder has to be submitted to the bank. You will also need to apply for a single account.
If Account Holder Dies With Nominee
Banks are asked to name the nominee when opening a bank account. For this, the name, address, and account holder information of the nominee has to be filled in. In case of the death of the account holder, the nominee retains full authority over the amount in the account. Ultimately, everyone needs to inherit the right person. In case of the death of the account holder due to being a nominee, he has no difficulty in withdrawing money. If the nominee has not done so yet, he needs to contact the bank and add the name of the nominee associated with the account. If the nominee is a minor, the name of one of the parents has to be decided on the bank application. If the account holder dies and the nominee is a minor, the amount in his / her account is given to the parent.
If Account Holder Dies Without Nominee
If a person has not nominated his bank account, it is very difficult to withdraw money from his account. His relatives have to do a lot of formalities for him. If the deceased account holder has written a will, then the amount in his account will be given to the person mentioned in the will. If there is no will, the amount will be paid to his legal heirs. But he has to submit a certificate of succession. If the deceased is young, then his legal heirs will be his wife and children. If there is no wife and child, then his parents and siblings will be the legal heirs.
What do the RBI rules say?
The RBI has not set any time limit for informing the bank after the death of a family member in such a case. Once the victim’s family is mentally ready, the banking process can be completed. According to the RBI, banks are required to complete the process within a fortnight if the family members are applying for withdrawal.