No Restrictions On LGBTQIA+ Couples To Open Joint Bank Accounts; Can Name Partner As Nominee: Read Finance Ministry Advisory | Personal Finance News

An advisory issued by the Finance Ministry on August 28 had said, “In connection with Hon’ble Supreme Court of India’s judgement dated 17.10.2023 in the case of Supriyo @Supriya Chakraborty and another Vs. Union of India (Writ Petition Civil No. 1011/2022), this is to clarify that there are no restrictions for persons of the Queer community to open a joint bank account and also to nominate a person in queer relationship as a nominee to receive the balance in the account, in the event of death of the account holder.”

Rights Of Transgender Persons-Changes in Bank Forms/Applications: Check What RBI 2015 Circular Had Said

“It has been brought to our notice that transgender persons face difficulties in opening accounts as there is no provision for them in the account opening and other forms. In this connection, banks are advised to refer to the judgement dated April 15, 2014 of the Supreme Court in the case of National Legal Services Authority v. Union of India and others [AIR 2014 SC 1863: (2014) 5 SCC 438] on treating all transgender persons as ‘third gender’. The Supreme Court, in that case, upheld transgender persons’ right to decide their self-identified gender and directed the Centre and State Government to grant legal recognition of their gender identity such as male, female or as third gender.

Banks are, therefore, directed to include ‘third gender’ in all forms/applications etc. prescribed by the Reserve Bank or the banks themselves, wherein any gender classification is envisaged, RBI had said.

Availment Of Nomination Facility: RBI Had Said This In April 2009

The Reserve Bank of India had issued a circular on April 2009, under Banking Companies (Nomination) Rules, 1985 – Acknowledgement of Nomination and indicating the Name of the Nominee in Pass Books / Fixed Deposit Receipts.

RBI had mentioned, When a bank account holder has availed himself / herself of nomination facility, the same may be indicated on the passbook so that, in case of death of the account holder, the relatives can know from the pass book that the nomination facility has been availed of by the deceased depositor and take suitable action. Banks may, accordingly, introduce the practice of recording on the face of the passbook the position regarding availment of nomination facility with the legend “Nomination Registered”. This may be done in the case of term deposit receipts also.

In addition, the RBI had advised banks to indicate the name of the Nominee in the Pass Books / Statement of Accounts / FDRs, in case the customer is agreeable to the same, as this would be helpful to the customers/ nominees.