The Reserve Bank of India has recently clarified that its circular dated January 13, 2014, on the above subject is not intended to mandate banks to routinely insist on the appointment of a guardian from all the mentally ill persons “who is in need of treatment by reason of any mental disorder”.
Under the sections 53 and 54 of Mental Health Act1987, it is essential to appoint a guardian (and in some cases Managers) for the mentally ill persons. All the banks in India, therefore, insist for the orders or certificates issued by the competent authorities (The district courts and collectors of districts) for opening and operating account by mentally ill persons. This is also in terms of above said RBI circular.
As per Section 16(1) in The National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Rules, 2000, the application by a parent, relative or registered organisation for appointment of guardian for a person with disability shall be made to the local level committee in Form A. Hence, a petitioner for guardianship has the liberty to approach the District Collector or District Court as the case may be.
The apex bank explained in this regard that it would be necessary for banks to ask for the appointment of a guardian only in such cases where they are convinced on their own or based on documentary evidence available, that the concerned person is mentally ill and is not able to enter into a valid and legally binding contract. It is mentioned in the latest circular that in cases of doubts the banks may go for legal advice to avoid the situation of possible litigation at a later date.
The loan will be provided to set up an income generating activity for the benefit of the mentally retarded persons. The nature of income generating activity will be such that it involves the mentally retarded persons directly in the activity.Toknow the details click the following link
Whether bank can sanction loan to mentally retarded person?