To ensure the safety and security of our hard-earned money we deposit it in the bank or financial institution. But we cannot avoid the dilemma from our thinking that, Who will get the money from a deceased person’s bank account; nominee or heir?
To overcome this dilemma Bank company act-1991(Amended up to-2018) try to clear the concept that only a Nominated person to the bank by that account holder will get the whole amount after the death of the account holder. According to bank company act-1991, section 103 titled “Choice for the payment of deposited money” elaborated as-
(1) Where an individual has, or several persons have jointly deposited money with a banking company in his or in their name, that individual depositor may separately or, as the case may be, the group of depositors may jointly, in the way prescribed, choose a person to which, in the case of the death of the individual depositor or of all of the joint depositors, the deposited money shall be given: Provided that the said individual depositor or the said group of depositors may at any time cancel their choice and choose, in the way prescribed, another person.
(2) The person chosen under sub-section (1) being a minor, the individual depositor or the joint depositors may, in a prescribed way, direct who shall, in the case of the death of the individual depositors or of the joint depositors, receive the money during the period of minority of the chosen person.
(3) Notwithstanding anything contained in any Act for the time being in force or in any will or any kind of documentation regarding the allotment of properties, the person chosen under sub-section (1) or directed under sub-section (2) shall, after the death of the individual depositor or as the case may be, of all of the joint depositors, attain all the rights the individual depositor or the joint depositors had on that deposit, and every other person shall be deprived of those rights.
(4) Where a banking company has made payments in accordance with this section, all its obligations in respect of the deposit concerned shall be deemed fulfilled: Provided that no right or claim that any person may have or make against the person to whom the deposited money has been paid under this section shall be prejudicial to the provision of this subsection.
To ensure and clarify the concept Bangladesh Bank time to time updated its circular. Bangladesh Bank Banking Regulations and Policy Department Circular No.: 06, Dated: 19-04-2017 and Department of Financial Institutions and Marketing circular no.: 02, dated-12-06-2017 indicates to implement the rule described in Bank Company Act-1991(Amended up to-2018)
Documents to be submitted for receiving money from a deceased person’s bank account;
From this circular, we are more or less sure that after the death of the account holder nominee will get the amount. But Bangladesh Bank or Any other Bank operated in our country didn’t provide the universal set of documents that have to submit to get deceased account payment.
In that case, each bank practicing its own rules for settlement of deceased account payment. In most cases, people have to face various complexity to get the amount. Here I am trying to enlist the necessary document required by most of the banks or financial institutions to pay deceased account amount to its nominee;
First of all, the Nominee or relatives of the deceased person has to inform the bank authority about the news of the deceased person and mark it deceased account. And if they didn’t sure about the nominee they can ask the bank authority about the nominated person. After confirming the nominee name the following documents have to submit to the bank authority to get the amount;
01. Application in a plain paper by the nominee mentioning account holder death details, account number.
02. Death certificate from Union Parishad/Pourashava/City Corporation. If died in a hospital death certificate from Registered Doctor/Civil Surgeon. And if died in abroad Death certificate from Bangladesh Embassy from the respective country.
03. NID/Passport/Birth Certificate of the nominee certified by local people’s representative. In case of the Birth certificate, another photo attached ID like; professional ID, Student ID, Registration Card of educational Institutions have to submit. And Recent passport size photograph of all the Successor.
04. To verify nominee reference of two-person who will be customers of the bank or certified by local people’s representative.
05. Recent passport size photograph of the Nominee signed by the nominee.
06. Have to return unused cheque book leaves, passbook, cards and other documents of banks of this account.
Read also: Who will get the nominee less account deposit amount in case of a deceased account?
Banks parts to do;
After verifying all submitted documents by the nominee of the deceased account bank will;
01. Take an indemnity bond from the nominee referenced by two people accepted by the bank on non-judicial stamp/adhesive stamp of appropriate value.
02. Bank will confirm that the deceased person has no liability with the bank.
03. After confirming about the nominee and all presented documents to ensure more security to pay the amount bank may transfer the amount to the account of the nominee. If the nominee has no account with the bank may transfer by opening a new account. Bank also practices transferring the amount by issuing a Payment Order in the name of the nominee.
04. Bank may take time to settle this amount if the amount goes beyond the business delegation power of the head of the branch. In that case, they have to take permission from their competent authority.
If the nominee is a minor, procedure to be followed;
At the time of opening an account if the nominee is a minor bank has to take a declaration document for taking the deposited amount in case of the sudden death of the account holder. But most cases, this procedure is not followed because bank officials intend to avoid unusual hazards and reluctance to the account holder to give another document at the time of account opening.
But in the end, the customer has to face inconvenience at the time of taking the deceased account deposit amount. For that case;
01. If the nominee is a minor then his mother or father will receive the deceased account deposit amount.
02. If the nominee has no father or mother a legal guardian will be eligible for taking the money.
03. But for the proof of parents or legal guardian have to submit “Legal Guardianship Certificate” from the competent authority like local people’s representative, Court which will be granted by the bank.
These are the common procedure followed by most of the banks for payment of deceased account deposit amounts. But to some extent, extra procedures may be followed by banks for their own security. But it has to take in mind that unusual documents seeking from the nominee are quite a harassment for the person who lost their beloved person.
FAQs;
01. If any cheque leaves issued before the death of the account holder is that cheque is encashable?
No. After the death of the account holder, no cheque will be paid over the counter or transferred.
02. Who will be the nominee of a bank account?
Any person can be a nominee in a bank account. But banks preferred legal heirs to select as nominees to avoid future constraints.
03. Is nominee mandatory for opening a bank account in Bangladesh?
For making deceased account payment easier for the bank as well easily getting this amount by the nominee Bangladesh Bank made nominee mandatory for opening a bank account.
04. Can I deposit money into a deceased person’s account?
No transaction will be allowed after the death of the account holder.
05. Can I access my dead father’s bank account?
If you are the nominee you can access your father’s account after all procedures followed by the bank to pay your dead father’s account deposit by a single payment made for you.
Important Circular:
01. BRPD circular:
02. DIFM Circular:
03. The Government Savings Banks Act, 1873:
Most of the bank usually harass to give the money. This is need to be stopped.