Saturday, September 15, 2012

RBI DIRECTIVE ON 'SURVIVOR' CLAUSE

The Reserve Bank of India (RBI) has directed banks to incorporate the "either or survivor" or
"former or survivor" clause in their account opening forms. The central bank has also asked
banks to inform their existing as well as future term deposit holders about the availability of such
an option. The Reserve Bank of India (RBI) also said that if such a mandate ("either or survivor" or "former or survivor") is obtained, banks can allow premature withdrawal of term/fixed deposits by
the surviving depositor without seeking the concurrence of the legal heirs of the deceased joint deposit holder.

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