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).
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.
As per RBI guidelines, premature closure of the term deposit(s) is allowed in the event of the death of the depositor. Such premature closure of deposit would not attract any penal charges.
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