Whether the depositor is missing prior to maturity or after maturity, the below process apply.
As per the provisions of Section 108 of the Indian Evidence Act, a presumption of death can be raised only after a lapse
of seven years from the date of his/her being reported missing. As such, the nominee / legal heirs have to raise an
express presumption of death of the subscriber before a competent court in India. If the court presumes that he/she is
dead, then the claim in respect of a missing person can be settled on the basis of the same.
The Bank will process requests for balances, as follows and the below-mentioned documents would be required in
addition to details as indicated under section 3.1.
- Where the balance does not exceed the amount of Rs 5 lakhs: The Bank, upon receipt of a claim and after
considering the circumstances, m release the balance to the nominee/ legal heir, upon receipt of the following
documents, at the minimum- a) Certified copy of a ‘First Information Report’ (“FIR”) and non-traceable report from the police authorities; equivalent report issued by police /suitable authority may be collected for non-resident missing person.
- Where the balance exceeds the amount of Rs. 5 lakhs: The Bank, upon receipt of a claim and after considering
the circumstances, will release the balance to the nominee/survivor/legal heir, upon receipt of the following
documents, at the minimum- a) Certified copy of the Order of the Competent Court supporting the presumption of death; and b) The Bank will seek further documents, including where it remains unclear that the claimant is the sole claimant or that all persons concerned have not indemnified the Bank.
What shall be the rate of interest from the date of maturity till the date of actual payment? Whether the registered nominee can request for the renewal from the date of maturity, in the name of missing person till the decision regarding the payment to the nominee?
It will be savings account interest rate applicable during that period. No, once the FDmatures then it must be in the name of a nominee or legal heir but not in the name of missing person. Hence,
In order to avoid the loss of interest can the FD be renewed in the name of nominee till the decision regarding payment to the nominee is done?
Without the decision of payment to nominee, how can such FD is break up and create an FD in the name of the nominee? You may be claiming the right nominee. But Bank has to complete it’s process fully and once the FD paid to the nominee or legal heirs, then only you can invest.
Missing person is presumed to be dead after seven years. Then in order to avoid the financial loss of a aggrieved family why the FD can’t be renewed in the name of missing person? Is there any other way to avoid the loss of interest? Are there any citations supporting your opinion?
How can person As FD be renewed in the name of his nominee B’s name? When as per law bank is of not sure that whether the person is really missing or not (legally as per law)? You can’t force bank that person is missing and hence we can’t wait for 7 years to claim and for that reason renew in our name as we are a nominee. It can’t happen so.
I intend to only avoid the loss. Let the money be with the bank until there is any legal decision. So I just expect the renewal in the same name without any change in the nomination. Can you please quote any citation?
I understood with your point and money also legally with them. But do you know the legal complications if bank renew (without the consent of FD holder who is missing or renew in the name of nominee)? No bank will take this forward and blindly neither renew nor create and FD in the name of a nominee.
I expect the renewal in the name of missing person so that even if the missing person is found, then he will get the money without any kind of loss else the nominee will submit the claim after legal declaration of presumption of death by the competent authority.