Urban co-op banks asked to involve 'survivor' clause in term deposit form
By Neelima Shankar
Aug 31, 2012
Print    Email    RSS   

Urban co-operative banks (UCB) have been directed by the RBI to change their fixed deposits account opening form and include the 'survivor' clause in it. Survivor clause talks about no penalty on premature withdrawal of the deposit in case of the death of any of the joint account holders.

According to the change in the norms, either of the surviving account holder would be able to withdraw money as 'either or survivor' or 'former or survivor' mandate , and would not be charged any penalty.

Earlier the RBI had directed scheduled banks and UCBs to incorporate the 'either or survivor' or 'former or survivor' clause in their fixed deposits opening form.

On non compliance of the norms, the RBI said, "UCBs which have neither incorporated such a clause in the account opening form nor taken adequate measures to make the customers aware of the facility of such mandate, cause unnecessary inconvenience to the 'surviving' deposit account holders(s)."

The regulator further added that UCBs should include the 'survivor' clause in all their fixed deposits accounts; both new and existing. The account holder can give the mandate either at the time of account opening or any time during the tenure.

RBI further added that, "If such a mandate is obtained, banks can allow pre-mature withdrawal of term/fixed deposits by the surviving depositor without seeking the concurrence of the legal heirs of the deceased joint deposit holder,"

(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Carnival of Indian Personal Finance Blogs #2
Tax saver fixed deposits in India earn you...
Should you preclose your current FD for...
Plan your tax, don’t evade it
An Overview of Wealth Management Services...

MEXING: CaℒL Giℛℒ In Hoshiarpur 09855660911...
Sakeela.CaℒL Giℛℒs In Kharar 0985566O911...
NANGAL: CaℒL Giℛℒ In Una 09855660911 Escoℛt...

Federal Bank launched V connect for its customers Feb 12, 2015
Andhra Bank on expansion mode Feb 11, 2015
Dena Bank earned a profit of 13%. Feb 9, 2015
Banks expected to cut down the rates Feb 5, 2015
RBI kept the rates unchanged Feb 4, 2015
News Archive