Bank accounts of persons of mental illness and mental retardation and multiple disabilities explained

India is a signatory to the United Nations Convention on the Rights of Persons with Disabilities, 2006(UNCRPD) which provides the same human rights to persons with disabilities that everyone else enjoys. Section 5.2 of UNCRPD establishes internal equality between physical and mental disabilities. In view of UNCRPD resolutions, we in India have an international obligation to ensure equal access including that of banking services to all members of the population including a person suffering from any of the conditions relating to autism, cerebral palsy, mental retardation or a combination of any two or more of such conditions and includes a person suffering from severe multiple disabilities on par with physically disabled Indian citizens.
The determination of a person’s mental illness shall alone not imply or be taken to mean that the person is of unsound mind unless he has been declared as such by a competent court. According to Mental Health Act, 1987, a “mentally ill person” means a person who is in need of treatment by reason of any mental disorder other than mental retardation. Sections 53 and 54 of this Act provide for the appointment of guardians for mentally ill persons and in certain cases, managers in respect of their property. The prescribed appointing authorities are the district courts and collectors of districts under the Mental Health Act, 1987. Thus, the Reserve Bank of India advised banks in India to rely upon the Guardianship Certificate issued either by the District Court under Mental Health Act, 1987 for persons of mental illness and by the Local Level Committees for mental retardation and multiple disabilities under the National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999. Accordingly, banks are opening and allowing operation in the accounts with above types of disabilities on the basis of guardianship certificate issued by appropriate authorities.
Who can be guardians of the wards?
Both the parents may jointly, or, in the event of the absence of one due to death, divorce, legal separation, desertion or conviction, may singly apply for guardianship of their or as the case may be his ward beyond the age of 18 years. In the absence of both the parents for any reason the sibling/s (including half and step-siblings) jointly or singly (reason of single application to be explained separately) may apply for guardianship of a disabled member of the family. In the event of the non-availability of parents/siblings or any member of the family for guardianship, any registered organization may make an application for guardianship. In the case of a destitute or abandon person, the Local Level Committee may direct a registered organization to make an application for guardianship. If the registered organization stops functioning or ceased to be a registered organization under law, the Local Level Committee shall make an alternative for the foster care of any such inmate or the ward, which is under the care of any such organization. The alternative arrangement can only be for a temporary period and shall be placed by permanent guardianship within a period of one year. In the case of the female ward a male person cannot be considered as sole guardian, in such cases, the male person shall be given co-guardianship with his spouse, who shall be master co-guardian.
The loan will be provided to set up an income-generating activity for the benefit of the mentally retarded persons. The nature of the income-generating activity will be such that it involves the mentally retarded persons directly in the activity.
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