Everyone knows how to handle the money in a bank account and this is not a new thing, but it is difficult to claim money after the account holder’s death due to being unaware about the process or banking norms of a particular bank.
India’s leading bank, State Bank of India has a set of instructions for its customers to follow for claiming money upon the death of an SBI account holder. Before filing or initiating a death claim, a claimant must ensure two things; one is whether the account of the deceased person was a single holding account or it was held jointly with another person. Secondly, if the said nominees are registered in the records of the SBI by the deceased person or not.
There are different sets of instructions and processes for filing a death claim with SBI as per the condition applied. Here is the process one needs to follow while filing the death claim of an account holder.
Prerequisites before filing a death claim with SBI
- A handwritten application form informing you about the death of the account holder to the bank.
- A copy of the death certificate of the SBI account holder.
- A copy of valid ID proof of the deceased. This must also be self-attested by the surviving account holder.
Steps to claim money if the account of the deceased is held jointly with the survivorship clause?
If the SBI saving account of the deceased was held jointly but with no registered nomination, then the process of filing a death claim is comparatively easy. A claimant must ensure they have important documents before filing a death claim.
Step 1: Submit a written application informing you about the death of the SBI account holder to the bank.
Step 2: Attach a photocopy of the death certificate and valid ID proof (self-attested by surviving account holder) of the deceased account holder along with the written application.
Step 3: Submit a duly-filled fresh account opening form.
Step 4: You will also be asked to provide a copy of your identity proof such as Aadhaar card, PAN card, passport, driving license. So, produce these along with your recent photograph and attach them to the form.
Step 5: After submission, SBI will carry out the process of transferring money to the surviving account holder. The bank sends SMS throughout the procedure to keep the claimant updated.
Important point: The claimant is issued a new cheque-book from the bank after filing a death claim. The bank also blocks the ATM card which was issued in the name of the deceased account holder.
How to file a death claim if the account is held jointly without a survivorship clause?
When the signature of all the account holders is required to carry out financial and non-financial transactions, then the savings bank account is said to be operated on a joint basis. Upon the death of an SBI joint account holder, the balances are paid in equal proportion to all the surviving account holders.
- SBI asks for crucial documents such as a succession certificate, will and probate, and an order from the Administrative General attached to the High Court.
- Surviving account holders are also required to provide a letter of indemnity and surety to the bank.
- In addition to this, the surviving account holders are also required to undergo the KYC process.
Steps to file a death claim for a sole account holder (if nomination is registered)
For the purpose of claiming settlement of a deceased account in a bank, the nominee is considered just a custodian of the asset who has the responsibility to rightfully hand over the asset to the legal heirs. In case of the sole account holder being deceased or all joint holders of a joint account being deceased, a nominee can file the claim with the bank.
Step 1: Collect a ‘Claim form’ from the SBI bank branch and fill in all the input fields carefully.
Step 2: Along with a duly filled form, attach your photograph along with the following documents:
- Chequebook, passbook, ATM card of the deceased, death certificate, nomination receipt.
- Valid address proof of the nominee and most importantly, identification proof of the nominee declaring the relationship with the deceased
Step 3: After submitting these documents, a nominee will also be required to provide the signatures of two witnesses.
Step 4: Lastly, after satisfactory verification, SBI may initiate the transfer of the claimed amount to the account of the nominee.
You can check these details by clicking on the link https://sbi.co.in/web/faq-s/faq-deceased-accounts. The FAQ section will help you understand the claim settlement procedure, clause of survivorship, joint deposit account, legal representation and what documents are required for disposal of deceased accounts without legal representation.