Module: | KYC, NPAs, Advances & Investment Valuations
Q216: Scenario: A customer who previously operated a minor account independently turns 18. Another customer is reported missing for over a year, leaving behind a deposit of ₹80,000. A third deceased customer's account receives a dividend credit after the final claim settlement. Based on RBI guidelines, consider the following required actions:
1. The bank must mandatorily obtain fresh operating instructions and specimen signatures from the minor customer immediately upon them attaining the age of majority.
2. For the missing person's claim of ₹80,000, the bank can settle the claim using a copy of the FIR and a police non-traceable report in lieu of a formal death certificate.
3. The bank must deduct standard TDS from depositors even if they submit a valid declaration in Form 15-G or 15-H.
4. The bank must accept the post-settlement dividend credit into the deceased customer's closed account and notify the legal heirs to initiate a fresh claim.
Which of the statements given above is/are correct?
2. For the missing person's claim of ₹80,000, the bank can settle the claim using a copy of the FIR and a police non-traceable report in lieu of a formal death certificate.
3. The bank must deduct standard TDS from depositors even if they submit a valid declaration in Form 15-G or 15-H.
4. The bank must accept the post-settlement dividend credit into the deceased customer's closed account and notify the legal heirs to initiate a fresh claim.
Which of the statements given above is/are correct?
✅ Correct Answer: B
The correct answer is B. Statement 1 is correct: The operational directives dictate that once a minor attains majority, the bank must immediately freeze prior mandates and strictly obtain fresh operating instructions and specimen signatures.
Statement 2 is correct: The regulatory framework provides a simplified claim mechanism for missing persons where the total amount is strictly less than ₹1 Lakh, allowing settlement via an FIR and a police non-traceable report without demanding a formal court order for civil death.
Statement 3 is incorrect: The rules explicitly exempt depositors from standard TDS deductions if they successfully submit a valid Form 15-G or 15-H declaration.
Statement 4 is incorrect: The guidelines command that any credit received post-settlement in the name of a deceased customer must not be accepted into a closed account; it must be immediately returned to the remitter with the specific remark "Account holder deceased".
Statement 2 is correct: The regulatory framework provides a simplified claim mechanism for missing persons where the total amount is strictly less than ₹1 Lakh, allowing settlement via an FIR and a police non-traceable report without demanding a formal court order for civil death.
Statement 3 is incorrect: The rules explicitly exempt depositors from standard TDS deductions if they successfully submit a valid Form 15-G or 15-H declaration.
Statement 4 is incorrect: The guidelines command that any credit received post-settlement in the name of a deceased customer must not be accepted into a closed account; it must be immediately returned to the remitter with the specific remark "Account holder deceased".