Module: General Practice
Q54: Regarding "Pipeline Flows" (credits or cheques received in the name of a deceased depositor after their death), which of the following approaches are authorized by the RBI?
The bank may return the instrument to the remitter with the remark "Account Holder Deceased".
The bank may open a temporary account styled "Estate of Mr. X, Deceased" to credit such flows.
The bank may credit the funds directly to the Nominee's personal savings account.
The bank may open a temporary account styled "Estate of Mr. X, Deceased" to credit such flows.
The bank may credit the funds directly to the Nominee's personal savings account.
✅ Correct Answer: B
Correct Answer: B. 1 and 2 only.
Concept: Pipeline Flows Management.
Scenario: A dividend warrant or pension arrives after the customer dies.
Authorized Approaches: 1. Return to Remitter: The bank sends it back so the remitter can issue a new payment to the heirs. (Statement 1 is Correct). 2. Estate Account: Upon request from the legal heirs, the bank can open a temporary account named "Estate of Deceased" to collect these proceeds. (Statement 2 is Correct). 3. Statement 3 is Incorrect: The bank cannot strictly "endorse" a cheque drawn for the deceased into the Nominee's personal account.
It must go through the Estate account or be re-issued by the remitter.
Concept: Pipeline Flows Management.
Scenario: A dividend warrant or pension arrives after the customer dies.
Authorized Approaches: 1. Return to Remitter: The bank sends it back so the remitter can issue a new payment to the heirs. (Statement 1 is Correct). 2. Estate Account: Upon request from the legal heirs, the bank can open a temporary account named "Estate of Deceased" to collect these proceeds. (Statement 2 is Correct). 3. Statement 3 is Incorrect: The bank cannot strictly "endorse" a cheque drawn for the deceased into the Nominee's personal account.
It must go through the Estate account or be re-issued by the remitter.