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Joint accounts : Implications of different operation mandates

Joint accounts : Implications of different operation mandates


The joint accounts are the accounts which are in the name of two or more persons. The operation instructions in joint accounts in banks like ‘either or survivor’, former or survivor’, ‘anyone or survivor’, ‘both or survivor’ or ‘all or survivor’ are actually a mandate given by the joint holders of the account. Every above operation instructions have different meaning and are different from each other. Have a look at the following types of joint accounts  which have dissimilar operation mandates.

Account operated jointly by all the depositors: Account operated -jointly by all the depositors means, an account is maintained in the name of two or more individuals and the accounts is operated jointly by all the depositors. If  joint  account holders wish to operate the bank account  by any one of the joint account holders or any two or more of the joint account holders jointly, instruction to be given to the bank jointly signed by all the account holders. Under the operation instruction column of the application all the joint depositors must sign to effect the above operation instruction. In the absence of such instruction, the operation would be allowed only against joint signatures of all the depositors. Upon death of one of the depositors, the operation in the joint account will be stopped and balance will become payable to the survivor/s and the legal representatives of the deceased person. In case of joint accounts, nomination should be made jointly by all the joint account holders in favour of one person only.

Account operated by “former or survivor/s”: In case of account operated by “former or survivor account”, former can only operate the account during his/her life time and survivor will be allowed to operate the account after the death of the ‘former’. Closure of account and or transfer to another branch is possible only at the written request of both the account holders. When survivor wants to operate the account or close the account he/she should submit the death certificate of the former.  As per RBI guidelines (AP.Dir Circular  12 dated 15.09.2011) resident individuals in India are permitted to include non-resident close relatives (as defined in section 6 of the Companies Act) as joint holders in their resident bank accounts on “Former or Survivor” basis.

Account operated by “either or survivor”:  In case of account operated by “Either or survivor account, either of them can operate the account during their life time and by the survivor when one of them dies. Closure of account and or transfer to another branch is possible only at the written request of both the account holders. When survivor wants to operate the account in his name or close the account, he/she should submit the death certificate of the other account holder.

Account operated by “any one or survivors”: Any one of the depositors can operate the account during their life time and survivors will be allowed to operate the account after the death of one of the depositor without reference to the legal representatives of the deceased. Closure of account and or transfer to another branch is possible only at the written request of all the account holders. When survivor wants to operate the account or close the account, he/she/they should submit the death certificate of the deceased person.

Account operated by (a) “Both or survivor” (b) “All or survivor/s”

In case of accounts operated by (a) Both or survivor (b) All or survivor operation would be allowed only against joint signatures of the joint depositors as long as all the depositors are alive, upon death of one of the depositors the balance will become payable to the survivor/s without reference to the legal representatives of the deceased.

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