Settlement of Death Claim Cases

Branches are finding various practical problems while dealing with Death claim cases. In
current scenario of customer service , customer complaints on account of claim cases
and delay in settlement thereof are being faced.
The Bankercustomer relation gets terminated subsequent upon death of the customer.
On receipt of Claim case at the branch, the first and foremost task is to get Death
certificate issued by competent authority and proper identification of legal claimants,
KYC compliance. In case, the title is free from all sorts of conflicts and is legally
established and hasslefree, then there is no problem in settling the claim. The claims
should be settled with a realistic and expeditious and humanitarian & empathetic view,
without much discomfort to the claimants/customers The RBI has also emphasized the
need of hour for quick disposal of claim cases in view of tortuous procedures(particularly
to the family of deceased relating to individuals (Non business) in deposit accounts and
other facilities.
The claims are to be settled expeditiously and positively within the time prescribed
as under:1. In case of deposit accounts and lockers having nomination/survivorship
mandate, the claim in respect of the deceased customer should be settled and
payment to the nominee / survivor(s) should be released within a period not
exceeding 15 days from the date of receipt of the claim subject to the
production of proof of death of the deceased customer and suitable
identification of the claimant(s) to the satisfaction of the branch manager; and
2. In the case of deposit accounts and lockers without survivorship mandate /
nomination the claim should be settled, in accordance with the banks
guidelines, within one month from the date on which the requisite documents
have been Such accounts are required to be handled with care and caution. At
the same time there is an imperative need to avoid inconvenience and undue
hardship to legal heirs. To avoid procedural difficulties involved in the
disposal of claim cases in the absence of nomination, endeavor be made
to obtain nomination in all such accounts, where nomination is
permissible. All required guidance on nomination and its benefits be

provided to the deposit account holder/locker hirers of the bank, as per

guidelines issued by the bank from time to time.
As soon as it comes to the notice of the Incumbent In charge that an
account-holder has died, the fact be recorded in the relevant account in the
system and operation of the account will be stopped. All
procedural/operational instructions/guidelines of the bank to deal with such
accounts be meticulously observed.
1. In-Operative Accounts.
In all the cases, where operations have not been made for a considerably
long period ( or such period prescribed as per the guidelines of the bank from
time to time), the Incumbent should make an enquiry to ascertain the reason
of such non-operation. In case of death of a customer, the deposit lying in
account / articles kept in safe custody and lockers, as the case may be, are
to be paid / delivered as per the nomination, if made by the deceased
customer. If deceased customer made no nomination, the case is to be
settled having regard to claims made, and such claims have to be dealt with,
as per instructions given.
2 JOINT ACCOUNTS WITH SURVIVORSHIP CLAUSE.
Where in the case of joint account, relative account opening form provides
for the payment of balance to the survivor(s) (Either or Survivor/Former or
Survivor/Anyone or Survivors) upon the death of one of the holders of a
joint account, payment of the balance in such accounts can be made, after
verification of the fact of the death of the account holder, to the survivor(s) of
a deceased account holder unless at or before the time of payment, an
order of a court or other competent authority has been received
prohibiting payment to the survivor(s). A letter of request from the
survivor(s) and death certificate produced should be kept on record. As per
operational guidelines in para 158 of Chapter IV of Book of Instructions on
Routine, the account will, of course, continue but the survivor(s) should be
requested to open new account in his or their names and transfer the
balance into this new account.
When the balance is not payable to the survivor(s), the operation in the
account must be stopped and treated as a claim case. The claimant/s be
asked to submit claim form (PNB 46-47) duly filled in along with death
certificate and all supporting documents/papers.
3. SETTLEMENT OF CLAIMS ON THE BASIS OF NOMINATION.

Guidelines/Instructions on Nomination are contained in Chapter IV AND

CHAPTER XIII of Book of Instructions on Routine (printed on 30.9.2004).
These instructions be meticulously observed. Account holders should be informed
about the availability of nomination facility, on a voluntary basis and they be made
aware of its advantages. Nomination should be taken as a rule. Whenever the
account holder does not wish to make nomination, his/her refusal for the same
may be specifically recorded in the AOF, as per instructions issued by Inspection
& Audit Division, HO, N. Delhi in this regard.
As per delegation of powers, the Branch Manager / Officer In charge of the
Section has full powers to sanction the payment of deposit / delivery / release
of the articles kept in safe custody / locker, on the basis of nomination, to the
nominee.
In the deposit accounts, where the account holder made valid nomination,
payment of the balance in such accounts to the nominee of a deceased
account holder represents a valid discharge of the banks liability unless at or
before the time of payment/giving access to the locker, an order of a court or
other competent authority has been received prohibiting payment to the
nominee. A letter of request from the nominee - PNB 831 as prescribed in
Chapter IV and Chapter XIII of Book of Instructions on Routine and death
certificate produced should be kept on record. Due care and caution be taken
to establish the identity of the nominee and the fact of death of the account
holder. It should be made clear to the nominee that payment is made to him
only as a trustee of the legal heirs/legatee(s) of the deceased account holder
i.e. such payment given to him shall not affect the right or claim which any
person may have for that money.
In such cases, therefore, while making payment to the nominee of the
deceased account holder, production of succession certificate, letter of
administration or probate etc. or obtaining of indemnity or surety from the
nominee, irrespective of the amount standing to the credit of the deceased
account holder should not be insisted upon.
The above guidelines apply mutatis mutandis to Safe Deposit Lockers/Safe
Custody Articles
4. Settlement of claims in the absence of Nomination and Survivorship
Clause.
The claimant/s be asked to submit claim form (PNB 46-47) duly filled in
along with death certificate and all supporting documents/papers. In the
Managers Certificate on the reverse of claim form, it should also be
mentioned, after due check up, that no nomination was made by the
deceased.

5. General Guidelines for Settlement of Claim.

A. LEGAL REPRESENTATION.
No limit is prescribed below or beyond which, legal heirs be asked to
produce legal representation (Succession Certificate, Letter of
Administration etc.). Therefore, if Incumbent is satisfied that legal heirs are
identifiable and there is no dispute in respect of claim, with Bank, amongst
legal heirs, there is no necessity of requiring production of legal
representation, Claim may be settled on the basis of Indemnity Bond with
surety to the satisfaction of sanctioning authority.
However succession certificate may be called from heir/s of the deceased
depositor/s where there is/are dispute/s and all legal heirs do not join in
indemnifying the bank or in certain other exceptional cases where there is a
reasonable doubt about the genuineness of the claimant/s being the only
heir/s of the depositor/s.
B. WILLS, PROBATES, LETTERS OF ADMINISTRATION
Probates, Letters of administration, Succession Certificates, court orders
appointing Receivers, etc., submitted to the bank for registration, must be
carefully examined by the incumbent in charge.
Under Section 273 of the Indian Succession Act, probates and letters of
administration have effect over all the property and estate movable and
immovable, of the deceased throughout the state, in which these are
granted. These do not have effect outside the state unless these are
granted (a) by a High Court, or (b) by a District Judge, where the deceased,
at the time of his death, had a fixed place of abode situated within the
jurisdiction of the judge and the judge certifies that the value of the property
and estate affected beyond the limits of the state does not exceed Rs.
10,000/-. The foregoing remarks do not apply to succession certificates,
which have effect throughout India (Section 380 of the Indian Succession
Act, 1925).
C. LEGALLY ESTABLISHED TITLE VERIFICATION OF SUCCESSION
CERTIFICATE/LETTERS OF ADMINISTRATION/PROBATE.
When Succession Certificate / Letters of Administration / Probate are
produced as proof of Title, the genuineness of the document be checked up.
If need be, Court records be inspected personally or through a Counsel. If it
is done personally, a report to that effect be kept on record. If done by
counsel, a report be obtained and kept on record. If the order produced is
not genuine, necessary FIR be filed. Where claim is settled on the basis of
Succession Certificate / Letters of Administration / Probate, indemnity/surety
need not be called for. A letter of request and certified copy issued by the
court of the Succession Certificate/Letters of Administration/Probate be kept
on record.

D. CLAIMS BASED ON WILL.

In cases where the deceased has left a Will, incumbent incharge may ask
for a probate of the Will. However, if that is not feasible, in exceptional
cases where facts are not complicated, all the legal heirs may be asked to
support and confirm execution of the will of the deceased and also that they
have no objection in payment of the claim amount in terms of Will, by a
suitable declaration, duly attested by a notary or a magistrate. While
examining the Will it be checked up that the Will has been attested by at
least two witnesses. The copy of the Will provided be verified with original
Will. The fact of verification be recorded on the copy and the
acknowledgment of receipt of original be also got recorded and signed by
the legatee.
Some other check points, while examining the Will submitted in support of
the claim, are given below :a. Find out who is/are the legatee/s entitled under the Will for the claim
made.
b. An affidavit of the attesting witnesses that the Will was executed by the
deceased in their presence, in sound and disposable mind and with
free will without any coercion or undue influence, be obtained and be
kept on record.
c. An affidavit from the claimant/s that the Will relied upon which is
submitted in support of his/their claim is the last Will of the deceased
and that no litigation challenging the Will is pending in any court, be
obtained and kept on record.
E. Power of Attorney
i) Sometimes all the legal heirs are not able to join in taking payment of
deposit lying in deceased depositors account/ delivery of articles kept in
locker of the deceased. Such of them as cannot join, may execute Power
of Attorney in favour of one of the legal heirs on the format as per
APPENDIX B (for deposit accounts) and APPENDIX C (for lockers).
The same should be duly stamped and attested by a Notary / Magistrate.
Any modifications in the proforma, if required, may be got done in
consultation with local Counsel / Law Officer at RO / ZO.
ii) The power of attorney, executed abroad, should be attested by diplomatic
or consular Officer. The provisions of the Diplomatic & Consular Officers
(Oaths & Fees) Act, 1948 enable diplomatic or consular officer to attest/to
do all notorial acts. Such Power of Attorney is also required to be stamped
in India by Collector of Stamps within three months of its receipt in India.
iii) Whenever payment of deposit / delivery of contents of locker is made to
one of the legal heirs, on being authorized by power of attorney, receipt
and indemnity have to be signed / executed by the person authorized,
for self and as an attorney of others (name(s) to be specified).

Likewise, when mother / father acts as natural guardian, he/she shall sign
the receipt and indemnity for self and as a natural guardian of the
minor(s) (name to be specified).
F. Claims in respect of contents of Locker
i) If claim is to be settled on the title being legally established, the claimant be
advised to bring Letter of administration from the competent court.
ii) Claim case in respect of contents of locker may be settled against
execution of agreement of Indemnity / Indemnity bond on format as per
Appendix D and F, based on the value of the contents of locker and
after completion of other formalities like submission of declaration on form
no. PNB-46-47, death certificate etc,
5. SETTLEMENT OF CLAIM CASE, WHERE VALUE OF CLAIM DOES NOT
EXCEED RS. 5000/-.
Many rural Branches are situated in far flung areas and are very far from
city. In respect of settlement of claim cases involving small amount, claimant
may find it difficult to get the claim form attested by a notary or a magistrate
and in comparison to the amount of the claim obtaining attestation is also
expensive.
In view of the above it is decided that in rural branches in far flung areas
which are far from city, in claim cases where the total amount does not
exceed Rs.5000/- and no legal representation is produced, attestation of the
claim form by a Notary or a Magistrate need not be insisted upon.
Instead, the claimant be asked to obtain Certificate from Sarpanch (or any
post equivalent as Branch manager may deem proper), verifying the legal
heirs and submit the same to the bank.
6. SETTLEMENT OF CLAIM CASE, WHERE VALUE OF CLAIM DOES
NOT EXCEED RS. 25,000/-.
In claim cases involving amount not exceeding Rs.25000/- payment may
be made to legal heirs of the deceased, after relying on the declaration
made in the claim form about the legal heirs of the deceased, duly attested
by Notary/Magistrate. Payment can be made to legal heirs/claimant against
execution of an agreement of indemnity, specimen of which is enclosed as
APPENDIX D.
Gold ornaments or other securities held against advances may also be
released on adjustment of the relative advances, on the above lines.
No confidential enquiry need be made by the Incumbent or any surety be
insisted upon.
7. SETTLEMENT OF CLAIM CASE, WHERE VALUE OF CLAIM EXCEEDS
RS.25,000/-.

In claim cases involving amount exceeding Rs.25,000/- confidential enquiry

be made by the Incumbent about the legal heirs of the deceased as
disclosed in the claim form. Keeping in view the outcome of the confidential
inquiry, the claim may be settled and paid to the legal heirs of the deceased
against Indemnity Bond with surety to the satisfaction of the Incumbent In
charge/Sanctioning Authority (Specimen of Indemnity bond with Surety
in case of Deposit Account and in case of Locker Account are given at
APPENDIX E and F respectively). Gold ornaments or other securities
held against advances may also be released on adjustment of the relative
advances, on the above lines.
As a rule, surety worth double the amount of claim need not be insisted
upon.
8. Valuation for the purpose of exercise of powers
a) Deposit Accounts: Following criteria will be taken for the purpose of
ascertaining the valuation of claim:
Current A/c and Saving Fund A/c- Balance Outstanding. Fixed Deposit
A/c - Deposit Amount (i.e. excluding Interest. Recurring A/c - Amount
deposited till date of claim (I.e. excluding interest).
b) Lockers
i) Currencies, gold & silver (what ever form it may be) should only be valued
As per value on the date of claim.
ii) In case the locker does not contain items like currency, gold and silver,
but only contains other contents like documents, deposit receipts,
Govt. Securities etc., then sanction should be obtained from CM / RM /
SRM as the case may be, for its release to the claimant. These
documents need not be specifically valued but the inventory should
give their details and receipt should be obtained for such contents of
the locker.
Iii) In case the locker contains items like currency, gold and silver and also
other contents like documents, deposit receipts, Govt. Securities etc.,
then the sanction for such claim case should be obtained from the
authority not less then Chief Manager / RM / SRM or higher authority
depending upon the valuation of currencies, gold and silver found in
the locker.
9. TREATMENT OF PIPELINE FLOWS IN THE NAME OF THE DECEASED
DEPOSITORS.
Pipeline flows in the name of the deceased deposit account holder, if
received, be returned to the remitter with the remark Account holder
deceased, under intimation to the survivor(s) /nominee accordingly.

10. TIME LIMIT FOR SETTLEMENT OF CLAIMS.

(i) In case of accounts with nomination/survivorship clause, the claims in
respect of deceased depositors should be settled and payments to
nominee/survivor(s) should be released within a period not exceeding
15 days from the date of receipt of the claim subject to the production
of proof of death of the depositor and suitable identification of the
claimant(s) to the satisfaction of branch manager.
(ii) In the case of accounts without survivor/nominee clause the claim should
be settled, as per banks guidelines given, within one month from the
date on which the requisite documents have been submitted.
11. RULES OF SUCCESSION IN CASE OF HINDUS, BUDDHIST, JAIN
AND SIKH.
Male Hindu, Buddhist, Jain and Sikh
The property of a male Hindu, Buddhist, Jain and Sikh dying intestate i.e.
without making any Will shall devolve Firstly, upon the class I heirs
simultaneously and to the exclusion of all other heirs. Class I heirs are son,
daughter, widow, mother, son of a pre-deceased son, daughter of a predeceased son, son of a pre-deceased daughter, daughter of a predeceased daughter, widow of a predeceased son, (son of a pre-deceased
daughter of a pre-deceased daughter, daughter of a pre-deceased
daughter of a pre-deceased daughter, daughter of a pre-deceased son
of a pre-deceased daughter, daughter of a pre-deceased daughter of a
pre-deceased son)*, widow of a pre-deceased son of a pre-deceased son,
daughter of pre-deceased son of a pre-deceased son, son of a predeceased son of a pre-deceased son.
(*Included vide Hindu Succession(Amendment) Act, 2005)
If there is no heir of class I, then upon the heirs of other
classes/categories as per Hindu Succession Act, 1956 as in force.
Female Hindu, Buddhist, Jain and Sikh
The property of a female Hindu, Buddhist, Jain and Sikh dying intestate i.e.
without making any Will shall devolve
(a) Firstly, upon the sons and daughters (including the children of any predeceased son or daughter) and the husband;
(b) Secondly, upon the heirs of the husband (Please refer to the guidelines
above in respect of succession in case of Male Hindu.);
(c) Thirdly, upon the mother and father;
(d) Fourthly, upon the heirs of the father (Please refer to the guidelines
above in respect of succession in case of Male Hindu.); and
(e) Lastly, upon the heirs of the mother (Please refer to the guidelines
above in respect of succession in case of Female Hindu). Among the
heirs specified above, those in one entry shall be preferred to those in

any succeeding entry and those included in the same entry shall take
simultaneously.
When the claim case of deceased male Hindu, Buddhist, Jain and Sikh
involves heirs falling in the class/category of heirs other than the
Class I heirs or when the claim case is of deceased female Hindu,
Buddhist, Jain and Sikh who has not left behind any son, daughter
(including the children of any predeceased son or daughter) or when
the claim case is of the deceased belonging to religion other than
Hindu, Buddhist, Jain and Sikh religions, the matter be referred to Law
Officer/ Law Manager of the RO/ZO/HO for guidance.
JOINT HINDU FAMILY
On and from the commencement of the Hindu Succession (Amendment)
Act, 2005, in a Joint Hindu family governed by the Mitakshara law, the
daughter of a coparcener is, by birth become a coparcener in her own right
in the same manner as the son. She has the same rights in the
coparcenary property as she would have had, if she had been a son.
The above amendments will not affect or invalidate any disposition or
alienation including any partition or testamentary disposition of the property
which had taken place before 20.12.2004.
In case of settlement of claim in respect of HUF accounts on account of
death of a coparcener or in case of partition, the rights of the female
coparcener be also taken into account, apart from the rights of the
additional female heirs under Class I legal heirs in respect of successor to a
deceased male coparcener.
12. Appendices
Banks Guidelines (in a Category wise frame)
for Settlement of Deceased Claims in respect of
Deposit Accounts/Locker Accounts : APPENDIX A
Power of Attorney (in case of Deposit Accounts) : APPENDIX B
Power of Attorney (in case of Lockers) : APPENDIX C
Agreement of Indemnity
(in case of Deposit Accounts/Lockers) : APPENDIX D
Indemnity Bond with surety (for Deposits) : APPENDIX E
Indemnity Bond with surety (for Lockers) : APPENDIX F
Powers Chart in respect of Settlement of claim cases : APPENDIX G.

The Index Number allotted to DETAILS

OF INDEX
the each of the format given FORM
/ NO.ALLOTTED
in Appendix B, C, D, E DOCUMENTS
and F is as under : S.NO.
1.

APPENDIX B 1141
Power of Attorney
in
Deposit
Account

2.

APPENDIX C 1142
Power of Attorney
for lockers

3.

APPENDIX D 1143
Agreement
of
Indemnity
for
Deposit
Accounts
/
lockers

4.

APPENDIX F 1144
Indemnity
Bond
with surety for
lockers

Further, the Form No.PNB-346, APPENDIX `E Indemnity Bond with

surety for Deposit Accounts (PNB 346) is allotted the number 346 / 2005.
APPENDIX A
I. ACCOUNTS WITH NOMINATION1. Single Accounts (SF/Current /Term Deposit account)
In case of SF/Current A/c, the balance outstanding at the time of death of
the depositor will be paid to the nominee on verification of his/her identity
and proof of death of depositor. In the case of Term Deposit A/c, the
balance outstanding will be paid as above on maturity of deposit.
In case of Premature termination of Term deposit account, the nominee
will have right to seek premature termination of term deposit account as per
terms of contract on verification of his identity and proof of death of
depositor.
2.
Joint
Accounts
without
survivorship
mandate(operated
jointly)(SF/Current/Term deposit account) -

A. In the event of death of one of the joint account holders

In case of SF/Current A/c., the balance outstanding will be paid jointly to
survivor(s) and the legal heirs of the deceased joint a/c holder(s) (or any one
of them as mandated by all the legal heirs) on verification of the identity and
the authority of the legal heirs and proof of the death of the depositor.
In case of Term deposit A/c., the balance outstanding will be paid as
above on maturity of the deposit.
Premature termination of Term Deposit account will be permitted against
joint request of the survivor(s) and the legal heir(s) (or any one of them as
mandated by all legal heirs) as per the terms of the contract on verification
of the identity and the authority of the legal heirs and proof of death of
depositor.
B. In the event of death of both/all joint account holders
In case of SF/Current A/c., the balance outstanding at the time of death of
the depositor(s) will be paid to the nominee on verification of his identity and
proof of death of depositors.
In case of Term deposit A/c., the balance outstanding at the time of death
of the depositor(s) will be paid as above on maturity of the deposit.
In case of Premature termination of Term Deposit account, the nominee
will have right to seek premature termination of term deposit account as per
the terms of contract on verification of his identity and proof of the death of
the depositors.
3. Joint account with mandate Either or Survivor/Anyone or Survivors A. In the event of death of one of the joint account holders.In case of
SF/Current A/c., the balance outstanding will be paid jointly to survivor(s) on
verification of proof of death of the depositor.
In case of Term deposit A/c., the balance outstanding will be paid as above
on maturity of deposit.
Premature termination of Term Deposit account, will be permitted to
survivor(s) as per the terms of contract on verification of proof of death of
depositor.
B. In the event of death of both/all joint account holders
In case of (SF/Current /Term Deposit account), the balance outstanding
will be paid to the nominee on verification of his identity and proof of death of
depositors.
In case of Term deposit A/c., the balance outstanding will be paid as above
on maturity of deposit.
Premature termination of Term Deposit account, the nominee will have
the right to seek premature termination of term deposit account as per the
terms of the contract on verification of his identity and proof of death of
depositors.
4. Joint account with mandate Former or Survivor -

A. In the event of death of former

In case of (SF/Current /Term Deposit account), the balance outstanding
will be paid to the survivor on verification of proof of death of depositor.
In case of Term deposit A/c., the balance outstanding will be paid as
above on maturity of deposit.
Premature termination of Term Deposit account, the survivor will have
the right to seek premature termination of term deposit account as per the
terms of contract on verification of proof of death of the depositor.
B. In the event of death of both/all account holders
In case of (SF/Current /Term Deposit account), the balance outstanding
will be paid to the nominee on verification of his identity and proof of death
of the depositors.
In case of Term deposit A/c., the balance outstanding will be paid as
above on maturity of deposit.Premature termination of Term Deposit
account, the nominee will have right to seek premature termination of term
deposit account as per the terms of contract on verification of his identity
and proof of death of depositors.
II. ACCOUNTS WITHOUT NOMINATION 1. Single Accounts(SF/Current /Term Deposit account)
In case of SF/Current A/c, The balance outstanding will be paid to the legal
heirs (or any one of them as mandated by all the legal heirs) on verification
of the identity and the authority of the legal heirs and proof of death of
depositor.
In case of Term deposit A/c., The balance outstanding will be paid as
above on maturity of deposit.
Premature termination of Term Deposit account, will be permitted on
joint request by all legal heirs(or any of them as mandated by all the legal
heirs) as per the terms of the contract on verification of the identity and the
authority of the legal heirs and proof of death of depositor.
2.
Joint
Accounts
without
survivorship
mandate
operated
jointly)(SF/Current/Term deposit account) A. In the event of death of anyone of the joint account holders
In case of SF/Current A/c., the amount outstanding will be paid jointly to
the surviving account holders and legal heirs of the deceased account
holder(or any one of them as mandated by all the legal heirs) against their
joint claim on verification of the identity and the authority of legal heirs and
proof of death of depositor.
In case of Term deposit A/c., the balance outstanding will be paid as
above on maturity of the deposit.
Premature termination of Term Deposit account, will be permitted
against joint request of the survivor(s) and the legal heir(s) of the deceased
(or any one of them as mandated by all legal heirs) as per the terms of

contract on verification of the identity of and the authority of legal heirs and
proof of death of depositor.
B. In the event of death of both/all joint account holders.In case of
SF/Current A/c., the balance outstanding will be paid to the legal heir(s) of
all the depositors (or any one of them as mandated by all the legal heirs) on
verification of the identity and the authority of the legal heirs and proof of
death of the depositors.
In case of Term deposit A/c., the balance outstanding will be paid as
above on maturity of the deposit.
Premature termination of Term Deposit account will be permitted against
joint request by all legal heirs of the deceased depositors(or any one of
them as mandated by all legal heirs) as per the terms of contract on
verification of the identity and the authority of legal heirs and proof of death
of depositors.
3. Joint account with mandate Either or Survivor/Anyone or Survivors A. In the event of death of anyone of the joint account holders
In case of SF/Current A/c., the balance outstanding will be paid jointly to
survivor(s) on verification of proof of death of the depositor.
In case of Term deposit A/c., the payment will be made as above on
maturity of deposit.
Premature termination of Term Deposit account will be permitted to
survivor(s) as per the terms of contract and verification of proof of death of
depositor.
B. In the event of death of both/all joint account holders
In case of SF/Current A/c., the balance outstanding will be paid jointly to
the legal heirs (or any one of them as mandated by all the legal heirs) on
verification of the identity and the authority of legal heirs and proof of death
of depositors.
In case of Term deposit A/c., the balance outstanding will be paid as
above on maturity of deposit.
Premature termination of Term Deposit account will be permitted against
joint request by all legal heirs of the deceased (or any one of them as
mandated by all the legal heirs) as per the terms of contract on verification
of the identity and the authority of legal heirs and proof of death of
depositors.
2. Joint account with mandate Former or Survivor A. In the event of death of former

In case of Accounts SF/Current A/c., the balance outstanding will be paid

to the survivor on verification of proof of death of depositor.
In case of Term deposit A/c., the balance outstanding will be paid as above
on maturity of deposit.
Premature termination of Term Deposit account will be allowed against
request from surviving depositor as per the terms of contract on verification
of proof of death of the depositor.
B. In the event of death of both/all account holders
Single Accounts (SF/Current, the balance outstanding will be paid to legal
heirs (or any one of them as mandated by all the legal heirs) on verification of
the identity and the authority of legal heirs and proof of death of depositors.
In case of Term deposit A/c., the balance outstanding will be paid to legal
heirs (or any one of them as mandated by all the legal heirs) on verification of
the identity and the authority of legal heirs and proof of death of depositors.
Premature termination of Term Deposit account, the legal heirs (or any
one of them as mandated by all the legal heirs) will have the right to seek
premature termination of term deposit account as per the terms of contract
on verification of the identity and the authority of legal heirs and proof of
death of depositors.
APPENDIX B
(For deposit accounts) To be stamped as
Special Power of attorney as per rates
prevailing in the States and attested by a
Notary / Magistrate
POWER OF ATTORNEY
KNOW
ALL
MEN
BY
THESE
PRESENTS,
I/WE
(i)
Sh./Ms.Son
/Daughter
/Widow
of
.Resident of.............................................. ,
(ii)Sh./MsSon/Daughter/Widow of
R/odo
hereby
appoint
Shri/Ms..........
Son/Daughter/Wife of Shri...............R/o............
as my / our attorney in my / our name and on my / our behalf to do
or execute all or any of the acts or things mentioned hereinbelow. WHEREAS Shri
/
Ms
.....Son/Daughter/Widow
of
....deceased, at the time of his/ her death, had the following
accounts with Punjab National Bank, Branch Office and
WHEREAS he/she has expired on ... leaving behind
...
(No.)
legal
heirs,
namely,
.
...


..
Details of accounts of deceased Balance (Rupees)
1.
2.
AND WHEREAS I/we cannot present, myself / ourselves to receive my / our share
in the said amounts and give discharge to the Bank.
By virtue of this power of attorney, the said nominated attorney will do the
following acts, that is to say:
1. To receive my / our share in the aforesaid amounts lying with BO
..
2. To give receipt and proper discharge to the Bank in connection with the above
amounts received on my / our behalf.
3. To execute Indemnity Bond and arrange for surety in respect of my / our share
in the said amounts received.
4. Generally, to do all lawful acts necessary for receiving of the said amounts from
the Bank.
AND I / we hereby agree that all acts, deeds and things lawfully done by me / our
said attorney shall be deemed as acts, deeds and things done by me / us
personally and I / we undertake to ratify and confirm all and whatsoever that my /
our said attorney shall lawfully do or cause to be done for me / us by virtue of
powers hereby given.
IN WITNESS WHEREOF, I / we have signed this deed on this .. day of
.. year 20
1. Witness .
2. Witness..
EXECUTANT(S)
________________________________________________________

# If different persons execute at different places / different dates, the place / date
be not filled up. The place / date be indicated against their respective signatures.
APPENDIX C
(For lockers) To be stamped as Special
Power of attorney as per rates prevailing in
the States and attested by a Notary /
Magistrate

POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, I/WE (i) Shri/Ms. ..
Son/Daughter/Widow
of..Resident
of
...................................(ii) Shri/Ms.Son/Daughter/Widow of
.......................R/o.................................. do hereby appoint Shri / Ms
Son/Daughter/Widow of Shri
R/o .. as my / our attorney in my / our name and on my / our
behalf to do or execute all or any of the acts or things mentioned hereinbelow.
WHEREAS Shri/Ms . Son/Daughter/Widow of
deceased, at the time of his/ her death
had locker(s) No. . with Punjab National Bank,
Branch Office
AND WHEREAS he/she has expired on ... leaving
behind.........................(No.)
legal
heirs,
namely
......................
AND WHEREAS I/WE cannot present, myself / ourselves to open the locker,
receive the contents thereof and give discharge to the Bank.
By virtue of this power of attorney, the said nominated attorney will do the
following acts, that is to say:
1. To have access, to open the said locker and to receive contents thereof.
2. To sign the inventory of the contents of locker and receive copy thereof, give
receipt and proper discharge to the Bank in connection with the receipt of
contents of locker.
3. To execute Indemnity Bond and arrange for surety in respect of my / our share
in the contents of the said locker.
4. Generally to do all lawful acts necessary for receiving of the contents of the
said locker.

AND I / we hereby agree that all acts, deeds and things lawfully done by me / our
said attorney shall be deemed as acts, deeds and things done by me / us
personally and I / we undertake to ratify and confirm all and whatsoever that my /
our said attorney shall lawfully do or cause to be done for me / us by virtue of
powers hereby given.
IN WITNESS WHEREOF, I / we have signed this deed on this .. day of
.. year 20
1. Witness .
2. Witness..
EXECUTANT(S)
APPENDIX D
(For deposits / lockers) To be
stamped as an agreement as per
rates prevailing in the States
(Delete inapplicable words)

AGREEMENT OF INDEMNITY
THIS AGREEMENT is made at . this .
day
of
..
20

Between
(i)
Shri
/
Ms*S/D/W of ...
R/o........................(ii)
..

....
(*Give details of all claimants)
(hereinafter called the principal party which term shall include his / her / their
heirs / administrators and executors) of the one part and PUNJAB NATIONAL
BANK, a body corporate constituted under Banking Companies (Acquisition &
Transfer of Undertakings) Act, 1970 having its Head Office at. 7, Bhikhaiji Cama
Place, New Delhi 110066 and inter alia a branch office at _____________
(hereinafter called the Bank which expression shall include its successors and
assigns) of the second part.
WHEREAS
SHRI
/
Ms
S/D/W
ofR/o.................... deceased,
at the time of his / her death had the following account(s) / locker(s) with the Bank
:

AND WHEREAS the principal party claim / claims to be the sole heir / heirs of the
said late and as such
claim / claims to be entitled to the payment of the above balance / balances
standing to the credit of the deceased along with interest and / or delivery of
contents of the said locker.
NOW THIS AGREEMENT witnesseth that in consideration of the payment of
amount with interest by the Bank / delivery by the Bank of the contents of locker,
mentioned above (the receipt whereof the principal party hereby acknowledges),
the principal party agree(s) to refund, after demand, aforesaid amount / value of
the contents of locker, with interest, as may be levied by the Bank, in case any
claim is made about the aforesaid amount / contents of locker by any other heir or
anybody else.
IN WITNESS whereof, the parties to the indenture have put their signatures on
the day, month and year hereinabove mentioned.
THE PRINCIPAL PARTY....
FOR PUNJAB NATIONAL BANK

APPENDIX E
(for Deposit Account)
INDEMNITY BOND WITH SURETY
THIS INDENTURE is made at .. this . day
of
..
20

Between
(i)
Shri
/
Ms*S/D/W of ..R/o............
...................(ii)
.

(*Give details of all

claimants) (hereinafter called the principal party) of the first part AND Shri / Ms
S/D/W of ..R/o .
(hereinafter called the surety) of the second part and
PUNJAB NATIONAL BANK, a body corporate constituted under Banking
Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Head
Office at. 7, Bhikhaiji Cama Place, New Delhi 110066 and inter alia a branch
office at _____________ (hereinafter called the Bank which expression shall
include its successors and assigns) of the third part. WHEREAS Shri / Ms

S/D/W
ofR/o
. deceased, at the time of his / her death, had
the
following
account(s)
with
the
Bank
at
Branch
Office

Details of accounts of deceased Balance (Rupees)

1.
2.
AND WHEREAS the principal party claim / claims to be the sole heir / heirs of the
said deceased and entitled to the above mentioned money(s) of the deceased
and also claim(s) the payment of the above balance(s) standing to the credit of
the deceased in the books of the above along with interest.
NOW THIS AGREEMENT witnesseth that in consideration of the payment by the
Bank of the amounts above mentioned, (the receipt whereof the principal party
hereby acknowledges), the principal party and the surety both bind themselves
jointly and severally to pay the aforesaid amounts with interest, loss, damages
and cost of all kinds whatsoever to the Bank, in case any claim is made about the
aforesaid money(s) by anybody else. Further, in consideration of payment of the
aforesaid money(s) to the principal party by the Bank, the principal party and the
surety both undertake for themselves, their heirs, executors and administrators to

hold the Bank, its agents etc. harmless and indemnified in respect of all claims to
the aforesaid money(s).
IN WITNESS whereof the parties to the indenture have put their signatures on
the day, month and year hereinabove mentioned.
WITNESSES
1. NAME THE PRINCIPAL PARTY
OCCUPATION.
ADDRESS ..
2. NAME THE SURETY
OCCUPATION
ADDRESS ..

3. PUNJAB NATIONAL BANK FOR PUNJAB NATIONAL BANK

(PNB : 346)

APPENDIX F
(For Lockers)
INDEMNITY BOND WITH SURETY
THIS INDENTURE is made at .. this . day
of .. 20 Between (i) Shri / Ms* S/D/W
of..R/o.........................(ii)

(*Give details of all claimants)

(hereinafter called the principal party) of the first part AND Shri /
MsS/D/W ofR/o .
hereinafter called the surety) of the second part and PUNJAB NATIONAL BANK,
a body corporate constituted under Banking Companies (Acquisition & Transfer of
Undertakings) Act, 1970 having its Head Office at. 7, Bhikhaiji Cama Place, New
Delhi 110066 and inter alia a branch office at _____________ (hereinafter called

the Bank which expression shall include its successors and assigns) of the third
part.
WHEREAS
SHRI
/
MsS/D/W
ofR/o , deceased, at
the time of his / her death had the following lockers with the Bank at Branch Office

Locker(s)No.
..
AND WHEREAS the said principal party claim(s) to be the sole heir / heirs of the
said deceased and entitled to the above mentioned property of the deceased and
also claim(s) the delivery of the contents of locker(s) no. (As
per inventory report of the contents prepared on . ) in the name of the
deceased with the Bank.
NOW THIS INDENTURE witnesseth that in consideration of the delivery by the
Bank of the contents of the locker above specified, (the receipt whereof the
principal party hereby acknowledges), the principal party and the surety both bind
themselves jointly and severally to pay the value of the contents of locker(s) with
interest, loss, damages and cost of all kinds whatsoever to the Bank, in case any
claim is made about the aforesaid contents of the lockers by anybody else.
Further, in consideration of the aforesaid delivery to the principal party by the
Bank, the principal party and the surety both undertake for themselves, their heirs,
executors and administrators to hold the Bank, its agents etc. harmless and
indemnified in respect of all claims to the aforesaid contents of locker(s).
IN WITNESS whereof the parties to the indenture have put their signatures on the
day, month and year hereinabove mentioned.
1. NAME THE PRINCIPAL PARTY
OCCUPATION
ADDRESS ..
2. NAME THE SURETY
OCCUPATION
ADDRESS ..
3. PUNJAB NATIONAL BANK FOR PUNJAB NATIONAL BANK
Settlement on basis of Power of Attorney-Simplification
Further as per the extant guidelines the claims of the deceased customers may
be settled in favour of one of the legal heirs of the deceased if the other legal heirs
execute a Power of Attorney (duly notarised) in his favour on the basis of which
such authorized legal heir can sign the Claim Application Form for himself and for

and on behalf of other legal heirs as also execute Indemnity Bond / Letter and
give valid discharge to the bank by signing the Receipt in token of having received
the proceedis of the claim / contents of the locker. This facilitates smooth
settlement of the claims as all the legal heirs need not to join the claim settlement
process and visit the branch. The purpose of obtaining the duly notarized
Power of Attorney is that there is a presumption in law that such a Power of
Attorney has been duly executed and the chances of raising dispute in
respect of its due execution are minimized.
However, pursuant to the Review Meeting of Banking Sector held at Directorate
of Public Grievances on 27.01.2010, the Authorities desired that the process of
settlement of deceased claims should be further simplified in terms of execution of
docuemnts.
Accordingly, it is advised that in respect of claims upto the value of Rs.2.00 lac in
place of existing requirement of execution of Power of Attornery, a Power of
Attorney or a Letter of Consent-cum-Relinquishment, duly notarized /attested,
(as per the Annexure) may be executed by the legal heirs in favour of one of the
major legal heirs to lodge claim, to execute documents, to receive claim amount,
etc. However, the Branch Manager will verifiy the identity of the executants of the
Letter to his satisfaction before acting on the Letter of Consent-cumrelinquishment. (As given below in annexure)

ANNEXURE
The Branch Manager
Punjab national bank
BO:
Settlement of Claim pertaining to the Deceased Customer Shri / Smt. /
Kum.______________________________in respect of Account /
Locker No._______________ at your branch.
With reference to the above I / we inform you that Shri / Smt. / Kum.
___________________________, who has been your customer, expired
on ______________________ leaving behind him/her the following legal
heirs, who are entitled to receive the amount / contents of the Locker lying
with you in the above account / locker.
Sr. No.

*Name of the Age (Years)

Legal heir with
full Address

Relationship
with
the
deceaed

1.
2.
3.
We, the legal heirs at Sr. No.________ to ___________above, hereby
relinguish our claim and give consent in favour of the abovesaid Shri / Smt.
/ Kum______________________(at Sr. No.______ above) to sign &
present the claim in his/her own name in respect of the said Account
No.______________________
/
Locker
No._______________________________ having a credit balance of
Rs.______________________(as on _____________________) and to
receive the payment of the amount lying in the said Account / the contents
lying in the said Locker and to execute the required documents in his / her
own name for himself / herself and to give receipt and discharge to the
bank in regard to the claim.
We hereby declare that the payment / delivery so made to the above Shri /
Smt. / Kum. _________________________ shall validly discharge the
bank and none of us will have any claim against the bank in whatsoever
manner in this regard.

The Signatures of the above Shri / Smt./Kum 1.

are
given
below:- 2.
_____________________________
3.
(Signature of the Authorized Person)
Name:
Address__________

*EXECUTANTS

(*To be signed with name and full address by the persons except in
whose favour the relinguishment and consent is given)
Signed before me on this ______ day of _________ Two thousand
_______________.
Seal
Notary Public / Gazetted Officer / Officer of Public Sector
Undertaking

The various powers

settlement of claim
various levels are
under:Level
Authority

for To sanction claim without Legal Representation

at (Amount - Rs. In Lac)
as
of
Against Agreement of Against
Indeminity
Indemnity Bond
(WITH
(WITHOUT SURETY)
SURETY)
Existi Revised
ng

Incumbent of Small 0.25

Branch in Scale-I
Incumbent of Medium 0.25

Existing

Revised

0.50

1.00

1.50

0.50

2.00

3.00

Incumbent of Large 0.25

Branch in Scale-III

0.50

3.00

5.00

Chief
Manager
in 0.25
Scale-IV at Branch /

1.00

5.00

10.00

Branch in Scale-II

Circle Office / HO
AGM in Scale-V at 0.25
Branch /Circle Office
DGM in Scale-VI at 0.25

2.00

10.00

20.00

5.00

20.00

Full

Branch / Circle Office /

HO

(A Patna ZTC presentation Nayaz Alam,Sr. Faculty)