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What happens to the bank account after death? Close account or continue?

What should families do after the death of a loved one?

Mumbai: After the second wave of corona virus, India has witnessed a dire situation. Many have lost loved ones in Corona. Many responsibilities have to be fulfilled after the departure of a loved one. (Bank Account Rule: After death What should be done with Bank Account?) There are many things related to banking, insurance. The most important of these is the ‘bank account’.

What to do with a person’s bank account after losing a loved one? This question falls on everyone. Is it appropriate to close this account or continue? This question is facing many. What to do in such a case?

What happens to the account?
If the family of the deceased does not know about their private account. Each bank waits for two years. However, if no transaction takes place within 2 years, the bank activates the account. The bank then tries to contact the account holder. The account is asked to be activated.

If this continues for 10 years. This means that no transaction has taken place in the Inoperative Account for 10 years. The money in that account and the interest on it are transferred to the Education and Awareness Fund account. This is reported to the customer’s family.

What to do with the account?
If the family has information about the deceased’s account. So they should not rush to close that account. According to Money9’s report, experts from Fee Only Investment Advisors LLP said the deceased should not rush to close his bank account. Because it will have some income like family pension, dividends, interest which can come in handy for the family. So don’t rush to close the account.

What is the period for closing the account?
The Reserve Bank of India has not fixed any time frame for closing such accounts. You can apply for account closure at any time. When the family can recover from the loss of a loved one. He should then make this decision. The process should be completed within 15 days after the bank submits the application for withdrawal as per the RBI order.

Eat how it closes
If you want to close the account. So you need to give the notarized death certificate of the deceased to the bank. If there is a nominee, the nominee will get all the money. However, if there is no nominee, the money will be handed over to the person who inherits the family.


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