Sri Gokarnanath Cooperative Bank Ltd is opening its 13th branch at Regal Plaza, on Mission Street. The branch will be inaugurated by former union minister B Janaradhan Poojary on Friday. The bank started operations as a cooperative society at Kudroli area in 1925, and then in 1971 it was upgraded in a town cooperative bank.
A Shivananda Karkera, president of the bank told reporters since its set up, bank has been catering to the needs of backward and economically weaker sections of the society by providing them with group financial lending. The bank as per permission granted by the Reserve Bank of India aims to open one branch each year. He said, "RBI allows a bank of our nature to add 1 per cent of its existing branches in the form of new branch."
For the last 47-years bank has been earning profit continuously and has provided dividend to its members. In 2008-09 bank had declared a dividend of 20 per cent and earned a profit of Rs 93.86 lakh during 2009-10. The bank’s capital adequacy ratio is 19.37 per cent, which is above RBI norms, and it showed losses of 0.6 per cent. The bank as per audit classification has been rates A category bank, informed Karkera.
In the near future bank will be computerizing all its branches and administrative head office in a phased manner. At present out of 12 branches 7 are computerized. Kumble Sundar Rao, president, Karnataka Yakshagana Bayalatta Academy will be inaugurating the safe lockers at the new branch. K N Vijayaprakash, commissioner, MCC will inaugurate the computerized office. B R Bhat, general manager, Corporation Bank will preside.
Friday, July 9, 2010
Thursday, July 8, 2010
Andhra Bank joint venture subsidiary in Malaysia to start operations in 3 months
Andhra Bank, a public sector lender banking subsidiary in Malaysia will start operations in the next three months.
Chairman and Managing Director RS Reddy told Business Standard informed, “In all probability, we will register the subsidiary and start operations in two-three months.”
The bank will start the subsidiary in association with Bank of Baroda (BoB) and Indian Overseas Bank. Through the subsidiary bank is expected to cater the Indian population in Malaysia. Andhra bank has a 25% stake in the venture which comes to Rs 104 crore.
The bank has obtained clearance from both the Malaysian Central Bank as well as the Reserve Bank of India for subsidiary. Reddy told, BoB already has a representative office in Malaysia therefore the formalities for subsidiary will be completed smoothly.
Reddy added, in Malaysia out of the 8% of the population, about 2.1 million people are of Indian origin and the subsidiary will be catering to their financial needs. Apart from this, the bilateral trade between India and Malaysia is also increasing and now it stands at about $10 billion
The IndiaFirst Life Insurance Company, an insurance joint venture (JV) of Andhra Bank, BoB and Legal and General Plc of the UK, has started sale of insurance policies through their branch outlets. In the venture Andhra Bank has invested Rs 60 crore for 30% stake.
A senior official of the bank told, up till now AB had 19,689 policies and has collected a premium of Rs 53.44 crore, earning a commission of Rs 2 crore.
Meanwhile bank is expecting to earn a commission of about Rs 20 crore by collecting a premium of around Rs 250 crore.
For the next five years, Andhra Bank has set a target of achieving annual growth rate of 25 per cent, regarding this Reddy said with return on equity being 29.99 per cent the bank’s internal growth alone will help in meeting the target.
He said, last year, bank had registered a net profit of Rs 1,046 crore. After payment of dividend over Rs 760 crore was added to the Tier-II capital, “which will support the 25 per cent growth strategy,” he said.
Andhra Bank had got Rs 1,000 crore from the central government for which the bank will be issuing perpetual non-cumulative preference shares to increase its capital. Reddy added, capital is not a big issue for the bank as it already has a capital adequacy ratio of 14%.
Andhra Bank is planning to open 120 more branches in 2010-11 out of which it plans to open 50 branches outside Andhra Pradesh.
The bank is also working on increasing the share of fee-based income in the total from 12% to 15% in the current year and 18 per cent in 2011-12. Last year, bank fee –based income amounted to Rs 965 crore.
Chairman and Managing Director RS Reddy told Business Standard informed, “In all probability, we will register the subsidiary and start operations in two-three months.”
The bank will start the subsidiary in association with Bank of Baroda (BoB) and Indian Overseas Bank. Through the subsidiary bank is expected to cater the Indian population in Malaysia. Andhra bank has a 25% stake in the venture which comes to Rs 104 crore.
The bank has obtained clearance from both the Malaysian Central Bank as well as the Reserve Bank of India for subsidiary. Reddy told, BoB already has a representative office in Malaysia therefore the formalities for subsidiary will be completed smoothly.
Reddy added, in Malaysia out of the 8% of the population, about 2.1 million people are of Indian origin and the subsidiary will be catering to their financial needs. Apart from this, the bilateral trade between India and Malaysia is also increasing and now it stands at about $10 billion
The IndiaFirst Life Insurance Company, an insurance joint venture (JV) of Andhra Bank, BoB and Legal and General Plc of the UK, has started sale of insurance policies through their branch outlets. In the venture Andhra Bank has invested Rs 60 crore for 30% stake.
A senior official of the bank told, up till now AB had 19,689 policies and has collected a premium of Rs 53.44 crore, earning a commission of Rs 2 crore.
Meanwhile bank is expecting to earn a commission of about Rs 20 crore by collecting a premium of around Rs 250 crore.
For the next five years, Andhra Bank has set a target of achieving annual growth rate of 25 per cent, regarding this Reddy said with return on equity being 29.99 per cent the bank’s internal growth alone will help in meeting the target.
He said, last year, bank had registered a net profit of Rs 1,046 crore. After payment of dividend over Rs 760 crore was added to the Tier-II capital, “which will support the 25 per cent growth strategy,” he said.
Andhra Bank had got Rs 1,000 crore from the central government for which the bank will be issuing perpetual non-cumulative preference shares to increase its capital. Reddy added, capital is not a big issue for the bank as it already has a capital adequacy ratio of 14%.
Andhra Bank is planning to open 120 more branches in 2010-11 out of which it plans to open 50 branches outside Andhra Pradesh.
The bank is also working on increasing the share of fee-based income in the total from 12% to 15% in the current year and 18 per cent in 2011-12. Last year, bank fee –based income amounted to Rs 965 crore.
Tuesday, July 6, 2010
Banks witness robust farm loan recovery after extension in debt relief scheme
The debt relief scheme has helped banks in speedy recovery of agricultural loans. As a result, in the last quarter agri non-performing assets (NPAs) of most of the banks has reduced.
Earlier in union budget 2010-11 Finance Minister Pranab Mukherjee had announced extension of debt relief scheme. Mukherjee extended the debt relief scheme of 2008 by six months to June 30, 2010, as in some states the condition of farmers was very bad due to drought and in some other parts of the country there was severe floods.
According to State Bank of India, country’s largest lender official, it is expecting its agricultural NPA to come down by in the last quarter. As on March 2010, agricultural loans accounted for nearly 10 per cent of the bank’s loan book. While it’s gross NPA ratio declined to 3.05% from 2.86% last year because of fresh loans turning bad.
Another public sector bank, Bank of India outstanding of agricultural loan stood at about Rs 388 crore under the debt relief scheme is expecting 60% recovery of the loan amount. M Narendra, executive director of Bank of India said, "We deployed special officers for farm loan recovery under the debt waiver scheme. The harvest has also been much better."
United Bank of India is also expecting more than 50 per cent recovery of farm dues in the last quarter. K R Kamath, chairman and managing director, Punjab National Bank said, "There had been significant recovery under the debt relief scheme, as the recovery mechanism was intensified."
Earlier under the debt relief scheme the farmers who have more than 2 hectares of land were given time up to December 31, 2009 to pay 75 per cent of their over dues. Also banks and lending institutions were allowed to recover less than 75% of the debt amount as one-time settlement (OTS) system, provided they bore the difference, as government announced to compensate only 25 per cent of the amount under debt relief.
At this most of the banks waived another 25% of dues, as a result borrower had to return only 50% of the dues.
However the government said it will not pay interest for the six month extension and only reimburse the 25 per cent amount to lending institutions as per the delayed reimbursement scheme.
A bank executive told, last year the farm loan recovery was very low due to factors like drought and anticipation of further relief in farm loans. The recovery dropped by 50% as compared to the previous year.
Earlier in union budget 2010-11 Finance Minister Pranab Mukherjee had announced extension of debt relief scheme. Mukherjee extended the debt relief scheme of 2008 by six months to June 30, 2010, as in some states the condition of farmers was very bad due to drought and in some other parts of the country there was severe floods.
According to State Bank of India, country’s largest lender official, it is expecting its agricultural NPA to come down by in the last quarter. As on March 2010, agricultural loans accounted for nearly 10 per cent of the bank’s loan book. While it’s gross NPA ratio declined to 3.05% from 2.86% last year because of fresh loans turning bad.
Another public sector bank, Bank of India outstanding of agricultural loan stood at about Rs 388 crore under the debt relief scheme is expecting 60% recovery of the loan amount. M Narendra, executive director of Bank of India said, "We deployed special officers for farm loan recovery under the debt waiver scheme. The harvest has also been much better."
United Bank of India is also expecting more than 50 per cent recovery of farm dues in the last quarter. K R Kamath, chairman and managing director, Punjab National Bank said, "There had been significant recovery under the debt relief scheme, as the recovery mechanism was intensified."
Earlier under the debt relief scheme the farmers who have more than 2 hectares of land were given time up to December 31, 2009 to pay 75 per cent of their over dues. Also banks and lending institutions were allowed to recover less than 75% of the debt amount as one-time settlement (OTS) system, provided they bore the difference, as government announced to compensate only 25 per cent of the amount under debt relief.
At this most of the banks waived another 25% of dues, as a result borrower had to return only 50% of the dues.
However the government said it will not pay interest for the six month extension and only reimburse the 25 per cent amount to lending institutions as per the delayed reimbursement scheme.
A bank executive told, last year the farm loan recovery was very low due to factors like drought and anticipation of further relief in farm loans. The recovery dropped by 50% as compared to the previous year.
Friday, July 2, 2010
Foreign lenders too announced their base rates
As the Indian public and private sector lenders have announced their base rates, foreign lenders have also opted to set their base rates at least 50-100 basis points (bps) lower than the Indian banks.
Amongst the foreign lenders in the country Citibank and Standard Chartered Bank have set their base rate at 7.25 per cent, same as HDFC Bank. Their rate is 25 bps lower than the country’s largest lender State Bank of India (SBI). On the other hand HSBC, the third largest foreign lender in the country has set its base rate at 7.0 per cent while Deutsche Bank has set to a lower competitive rate at 6.75%.
However all the other major public sector lenders - Bank of Baroda, Bank of India, Punjab National Bank and Union Bank of India have set their base rate at 8%.
A senior executive of a foreign bank said, “Given the size of our balance sheets, there is no question of a rate war with domestic banks. Our base rates reflect the area of the market that most foreign banks operate, which is at the short end.” “Most foreign banks are not active in the term loan market or infrastructure loans.”
Some of the foreign banks in the country have much lower cost structure in comparison to their public sector counterparts. For instance, as of 31 March Standard Chartered Bank current account, savings account ratio stood at 60%.
Foreign banks balance sheet is much smaller in comparison to their domestic counterparts and they depend more on fee income for profits. Unlike Indian banks, they have restrictions regarding the number of branches they are allowed to open.
As of March 31, 2009, Citi, the largest foreign lender, domestic loan book accounted to Rs 39,919.94 crore as compared to ICICI Bank’s 2,18,310.85 crore at the end of the same period.
Amongst the foreign lenders in the country Citibank and Standard Chartered Bank have set their base rate at 7.25 per cent, same as HDFC Bank. Their rate is 25 bps lower than the country’s largest lender State Bank of India (SBI). On the other hand HSBC, the third largest foreign lender in the country has set its base rate at 7.0 per cent while Deutsche Bank has set to a lower competitive rate at 6.75%.
However all the other major public sector lenders - Bank of Baroda, Bank of India, Punjab National Bank and Union Bank of India have set their base rate at 8%.
A senior executive of a foreign bank said, “Given the size of our balance sheets, there is no question of a rate war with domestic banks. Our base rates reflect the area of the market that most foreign banks operate, which is at the short end.” “Most foreign banks are not active in the term loan market or infrastructure loans.”
Some of the foreign banks in the country have much lower cost structure in comparison to their public sector counterparts. For instance, as of 31 March Standard Chartered Bank current account, savings account ratio stood at 60%.
Foreign banks balance sheet is much smaller in comparison to their domestic counterparts and they depend more on fee income for profits. Unlike Indian banks, they have restrictions regarding the number of branches they are allowed to open.
As of March 31, 2009, Citi, the largest foreign lender, domestic loan book accounted to Rs 39,919.94 crore as compared to ICICI Bank’s 2,18,310.85 crore at the end of the same period.
Wednesday, June 30, 2010
Senior citizen files complaint against State Bank of Patiala
Bandra-based businessman Sirish Kirtikar (63), a senior citizen filed a case against the State Bank of Patiala with the Maharashtra Consumer Disputes Redressal Commission. In his petition senior citizen has alleged that the bank has with drawn Rs 70 lakh from his bank account.
Kirtikar had nine accounts (savings and current) and 10 fixed deposit accounts at the bank’s Bandra branch. He told, “When I was going through a bank statement issued on April 23, 2009, it showed that amounts had been withdrawn from my accounts and deposited in accounts not known to me.”
Kirtikar in his complaint said he did not issue any instructions for withdrawal of the amount from his account. He added that when he asked the bank to furnish the original receipts of his 10 fixed deposit accounts- the value of which was more than Rs 1.12 crore—the bank gave him seven photocopies of the receipts.
He said, “When I got the receipts I was shocked to see that somebody had forged my signature and withdrawn money from the account.”
Officials of the State Bank of Patiala refused to comment. In a reply to an email sent by the Hindustan Times, M.K. Mohindroo, assistant general manager, Regional Office I (Mumbai) said, “Since the matter is subjudice, we are unable to give our comments.”
Kirtikar said that he has faced a loss of Rs 70 lakh due to “fraudulent acts on the part of bank”.
He also alleged that in spite of his several request bank is not providing the details of the day-to-day transactions of his accounts.
Kirtikar in a complaint said the bank told that the Reserve Bank of India (RBI) had permitted it to open accounts without consulting him.
He told, “When I filed an application under the Right to Information Act, the Reserve Bank of India told me it has not authorized any bank to open unauthorized accounts”.
Kirtikar has also filed a case with the Economic Offences Wing of the Mumbai police for a compensation of Rs 5 lakh, for the mental agony he has suffered.
Kirtikar had nine accounts (savings and current) and 10 fixed deposit accounts at the bank’s Bandra branch. He told, “When I was going through a bank statement issued on April 23, 2009, it showed that amounts had been withdrawn from my accounts and deposited in accounts not known to me.”
Kirtikar in his complaint said he did not issue any instructions for withdrawal of the amount from his account. He added that when he asked the bank to furnish the original receipts of his 10 fixed deposit accounts- the value of which was more than Rs 1.12 crore—the bank gave him seven photocopies of the receipts.
He said, “When I got the receipts I was shocked to see that somebody had forged my signature and withdrawn money from the account.”
Officials of the State Bank of Patiala refused to comment. In a reply to an email sent by the Hindustan Times, M.K. Mohindroo, assistant general manager, Regional Office I (Mumbai) said, “Since the matter is subjudice, we are unable to give our comments.”
Kirtikar said that he has faced a loss of Rs 70 lakh due to “fraudulent acts on the part of bank”.
He also alleged that in spite of his several request bank is not providing the details of the day-to-day transactions of his accounts.
Kirtikar in a complaint said the bank told that the Reserve Bank of India (RBI) had permitted it to open accounts without consulting him.
He told, “When I filed an application under the Right to Information Act, the Reserve Bank of India told me it has not authorized any bank to open unauthorized accounts”.
Kirtikar has also filed a case with the Economic Offences Wing of the Mumbai police for a compensation of Rs 5 lakh, for the mental agony he has suffered.
Thursday, June 24, 2010
Corporation Bank implements new security system for online banking
Corporation Bank has made internet banking more secured by implementing eMudhra PKI (public key infrastructure) solutions of 3i Infotech Consumer Services Ltd (CSL). It is the first bank in India to provide world class authentication security solution to the corporate online banking customers of the bank.
The most important feature of online transactions is impersonation thus there is no face-to-face encounter of parties. At present, in most of the cases the authentication factor is only the user id, login password and authorization password. But digital certificates provide watertight security measure to promote electronic exchange of document/information with outmost authenticity. Digital certificates can be issued only through a valid certification authority like eMudhra from 3i Infotech Consumer Services Limited, a fully owned subsidiary of 3i Infotech Ltd.
B R Bhat, general manager of the bank said in a release, "With growth of Internet and online transactions, security is always a concern to netizens for doing financial transactions. The launching of this world-class online banking security solution to our corporate customers adds an additional security to all online banking transactions and one can be rest assured that their online transactions are more secure."
However there are number of authentication methods used by banks such as one time passwords, virtual key board, and dual passwords being implemented and in vogue, while PKI based authentication of transaction using one's digital signature certificate is the only one that provides legal sanctity to transaction besides providing additional security. These measures have been done on the recommendation of RBI in its Internet Banking guideline and IT Act, 2000.
The most important feature of online transactions is impersonation thus there is no face-to-face encounter of parties. At present, in most of the cases the authentication factor is only the user id, login password and authorization password. But digital certificates provide watertight security measure to promote electronic exchange of document/information with outmost authenticity. Digital certificates can be issued only through a valid certification authority like eMudhra from 3i Infotech Consumer Services Limited, a fully owned subsidiary of 3i Infotech Ltd.
B R Bhat, general manager of the bank said in a release, "With growth of Internet and online transactions, security is always a concern to netizens for doing financial transactions. The launching of this world-class online banking security solution to our corporate customers adds an additional security to all online banking transactions and one can be rest assured that their online transactions are more secure."
However there are number of authentication methods used by banks such as one time passwords, virtual key board, and dual passwords being implemented and in vogue, while PKI based authentication of transaction using one's digital signature certificate is the only one that provides legal sanctity to transaction besides providing additional security. These measures have been done on the recommendation of RBI in its Internet Banking guideline and IT Act, 2000.
Tuesday, June 22, 2010
Importance of nomination in bank accounts
According to the Reserve Bank of India (RBI) report, around Rs 1,100 crore of unclaimed money is lying with Indian banks.
The report further stated that a major portion of this unclaimed money belongs to Hindu Undivided Family and individual accounts because the accountholders have died.
In such cases the main reason for unclaimed money lying with bank is that the accountholders have not nominated anyone in their accounts. This way not only legal heirs are deprived of the money also banks are facing problem in managing these unclaimed funds.
To solve this double edged problem, in 1983 the government of India had amended the banking laws to include nomination facilities in respect of all bank accounts. But, still many of us either are not aware of this facility especially people who are uneducated or living in rural areas, or do not want to face the fact that unforeseen events can happen to us.
Filing nomination is not difficult. While opening a new account, there is a column for nomination in the same form and you should fill it. You can nominate two persons with first and second option. If you have not done nomination in your accounts you can file a request for nomination for both – a single account or a joint account in Form No DA-1. In case of your death or the death of any of the joint accountholders the nominated person can received the amount lying in the account.
The form can be taken from bank and is applicable for all types of deposit accounts - savings account, recurring deposit account, fixed deposit account or even a current account.
In case you want to cancel the nomination or change the nominee at any point in the future, you can do so by simply submitting Form No DA-2.
In case of change in nomination or cancellation you must obtain a written acknowledgement of any request made to the bank. The banks normally give acknowledgement in a tear-off of the form being submitted.
If changes and variations in nomination are made frequently then you must keep photocopies of the forms to avoid any dispute in future and also for a ready reference. However banks make note of such submission of nomination forms or variations/ cancellations thereof in their records. At the time of deletion or addition to the original bank account, always ensure that the nomination form is also submitted with the bank covering all the account holders at the relevant times.
Nomination facility is available for individuals and other entities like partnership firms, limited companies and trusts, etc. This facility is also available to accounts operated by proprietors in respect of their business concerns, including current accounts.
In case of minor account holders, a nomination can be made by a person who is lawfully entitled to act on behalf of the minor.
Whereas, if the nominee is a minor, in such case the accountholder will have to appoint a person to receive the money during the time the nominee stays a minor. When nominee turns a major, he/she can claim the money from the bank directly.
Joint accounts
In case of joint accounts if the joint account holder dies without making any nomination, in such case the remaining accountholder/s can still make a valid nomination in respect of the bank account.
In case of one account holder, the bank will remove the name of the deceased from the account and the remaining accountholder/s remains the account holder/s. In case of only one account holder surviving, he becomes the sole accountholder of the account.
Fixed deposits
In fixed deposits also there is nomination facility. But in this if fixed deposit is held jointly, all the joint accountholders have to give nomination. A nomination request not signed by all accountholders will not be a valid request.
The nomination will remain active and alive as long as the deposit account is renewed also it automatically gets renewed on renewal of the deposit from time to time.
For nominees
As nominee becomes authorized accountholder after the death of accountholder therefore he is entitled to give a valid discharge for payment of the money due to the bank. The banks only consider registered nominees and not the legal heirs.
The nominees have to provide valid proof of death of the accountholder together with the claim in the prescribed form. The bank is also supposed to send a letter to the nominee in case no claim is filed within three months of the notice of death of accountholder being given to the branch.
The bank allows the nominee to foreclose the fixed deposit if he/she submit relevant document like death certificate/ claim form etc. But banks cannot grant any loan against such fixed deposit held by the deceased.
In case the nominee is other than legal heirs, then they can lodge their claim for the money of the deceased against the nominee and not against the bank, once the bank has paid the money to the nominee as per the terms of the nomination filed with it.
Legal heirs who obtain any order from the court then they can restrain bank from paying the money to the nominee.
The report further stated that a major portion of this unclaimed money belongs to Hindu Undivided Family and individual accounts because the accountholders have died.
In such cases the main reason for unclaimed money lying with bank is that the accountholders have not nominated anyone in their accounts. This way not only legal heirs are deprived of the money also banks are facing problem in managing these unclaimed funds.
To solve this double edged problem, in 1983 the government of India had amended the banking laws to include nomination facilities in respect of all bank accounts. But, still many of us either are not aware of this facility especially people who are uneducated or living in rural areas, or do not want to face the fact that unforeseen events can happen to us.
Filing nomination is not difficult. While opening a new account, there is a column for nomination in the same form and you should fill it. You can nominate two persons with first and second option. If you have not done nomination in your accounts you can file a request for nomination for both – a single account or a joint account in Form No DA-1. In case of your death or the death of any of the joint accountholders the nominated person can received the amount lying in the account.
The form can be taken from bank and is applicable for all types of deposit accounts - savings account, recurring deposit account, fixed deposit account or even a current account.
In case you want to cancel the nomination or change the nominee at any point in the future, you can do so by simply submitting Form No DA-2.
In case of change in nomination or cancellation you must obtain a written acknowledgement of any request made to the bank. The banks normally give acknowledgement in a tear-off of the form being submitted.
If changes and variations in nomination are made frequently then you must keep photocopies of the forms to avoid any dispute in future and also for a ready reference. However banks make note of such submission of nomination forms or variations/ cancellations thereof in their records. At the time of deletion or addition to the original bank account, always ensure that the nomination form is also submitted with the bank covering all the account holders at the relevant times.
Nomination facility is available for individuals and other entities like partnership firms, limited companies and trusts, etc. This facility is also available to accounts operated by proprietors in respect of their business concerns, including current accounts.
In case of minor account holders, a nomination can be made by a person who is lawfully entitled to act on behalf of the minor.
Whereas, if the nominee is a minor, in such case the accountholder will have to appoint a person to receive the money during the time the nominee stays a minor. When nominee turns a major, he/she can claim the money from the bank directly.
Joint accounts
In case of joint accounts if the joint account holder dies without making any nomination, in such case the remaining accountholder/s can still make a valid nomination in respect of the bank account.
In case of one account holder, the bank will remove the name of the deceased from the account and the remaining accountholder/s remains the account holder/s. In case of only one account holder surviving, he becomes the sole accountholder of the account.
Fixed deposits
In fixed deposits also there is nomination facility. But in this if fixed deposit is held jointly, all the joint accountholders have to give nomination. A nomination request not signed by all accountholders will not be a valid request.
The nomination will remain active and alive as long as the deposit account is renewed also it automatically gets renewed on renewal of the deposit from time to time.
For nominees
As nominee becomes authorized accountholder after the death of accountholder therefore he is entitled to give a valid discharge for payment of the money due to the bank. The banks only consider registered nominees and not the legal heirs.
The nominees have to provide valid proof of death of the accountholder together with the claim in the prescribed form. The bank is also supposed to send a letter to the nominee in case no claim is filed within three months of the notice of death of accountholder being given to the branch.
The bank allows the nominee to foreclose the fixed deposit if he/she submit relevant document like death certificate/ claim form etc. But banks cannot grant any loan against such fixed deposit held by the deceased.
In case the nominee is other than legal heirs, then they can lodge their claim for the money of the deceased against the nominee and not against the bank, once the bank has paid the money to the nominee as per the terms of the nomination filed with it.
Legal heirs who obtain any order from the court then they can restrain bank from paying the money to the nominee.
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