Page 63 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes Settlement of Dues in Deceased Deposit Account:
(i) If the depositor has registered nomination with the bank - the balance outstanding
in the account of the deceased depositor will be transferred to the account of/paid to
the nominee after the bank satisfies about the identity of the nominee, etc.
(ii) The above procedure will be followed even in respect of a joint account where
nomination is registered with the bank.
(iii) In a joint deposit account, when one of the joint account holders dies, the bank is
required to make payment jointly to the legal heirs of the deceased person and the
surviving depositor(s). However, if the joint account holders had given mandate for
disposal of the balance in the account in the forms such as “either or survivor,
former/latter or survivor, anyone of survivors or survivor; etc., the payment will
be made as per the mandate to avoid delays in production of legal papers by the
heirs of the deceased.
(iv) In the absence of nomination and when there are no disputes among the claimants,
the bank will pay the amount outstanding in the account of deceased person against
joint application and indemnity by all legal heirs or the person mandated by the
legal heirs to receive the payment on their behalf without insisting on legal documents
up to the limit approved by the bank’s board. This is to ensure that the common
depositors are not put hardship on account of delays in completing legal formalities.
Interest Payable on Term Deposit in Deceased Account
(i) In the event of death of the depositor before the date of maturity of deposit and
amount of the deposit is claimed after the date of maturity, the bank shall pay
interest at the contracted rate till the date of maturity. From the date of maturity to
the date of payment, the bank shall pay simple interest at the applicable rate obtaining
on the date of maturity, for the period for which the deposit remained with the Bank
beyond the date of maturity; as per the bank’s policy in this regard.
(ii) However, in the case of death of the depositor after the date of maturity of the
deposit, the bank shall pay interest at savings deposit rate obtaining on the date of
maturity from the date of maturity till the date of payment.

Safe Deposit Lockers: This facility is not offered through all bank branches and wherever
the facility is offered, allotment of safe deposit vault will be subject to availability and
compliance with other terms and conditions attached to the service. Safe deposit lockers
may be hired by an individual (being not a minor) singly or jointly with another
individual(s), HUFs, firms, limited companies, associates, societies, trusts etc. Nomination
facility is available to individual(s) holding the lockers singly or jointly. In respect of
lockers held in joint names, up to two nominees can be appointed. Joint locker holders can
give mandate for access to the lockers in the event of death of one of the holders on the
lines similar to those for deposit accounts. In the absence of nomination or mandate for
disposal of contents of lockers, with a view to avoid hardship to common persons, the
bank will release the contents of locker to the legal heirs against indemnity on the lines as
applicable to deposit accounts.

Redressal of Complaints and Grievances: Depositors having any complaint/grievance
with regard to services rendered by the bank has a right to approach authority (ies)
designated by the bank for handling customer complaint/grievances. The details of the
internal set up for redressal of complaints/grievances will be displayed in the branch
premises. The branch officials shall provide all required information regarding procedure
for lodging the complaint. In case the depositor does not get response from the Bank

58 LOVELY PROFESSIONAL UNIVERSITY