Legal Question in Banking Law in India

Dear Sir,
Would you be kind enough to clarify a doubt regarding PPF account
"A customer who was maintaining a PPF account had died. The nominee of
the account had also died after the death of the PPF account holder.
Now the legal heirs of the PPF account holder has approached for
release of the amount to them. The amount due in the loan account is
more than 5 lakhs.
Now my doubt is as follows
As per the PPF scheme in case of death of account holder, amounts upto
one lakh can be released on taking indemnity etc. As far as amounts
above one lakh, legal representation is to be produced.
However as per the bank's policy regarding release of deceased assets
adopted by the bank as per IBA guidelines, amounts in deposit accounts,
without any limit can be released after taking indemnity etc.
The question is whether relying on the policy relating to release of
deceased assets, the amounts in PPF account can be released.
I request you to be kind enough to kindly advise me your views in the
abvoe matter.

Asked on 1/07/12, 7:59 am

Aniruddha Pawse Aniruddha.P.Pawse Advocates

0 users found helpful

0 attorneys agreed

in my opinion the ppf authorities will ask the legal heirs for a succession certificate.

Answered on 1/09/12, 12:45 am

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