Nominees instead of legal heirs to get money after demise of depositors

Posted by BankInfo on Thu, Jun 15 2017 02:28 pm

BB directed all scheduled banks to pay deposited money to the nominee or nominees after the account holder's death

The Bangladesh Bank (BB) has directed all financial institutions to pay deposited money to the nominee or nominees after the death of a single or joint account holders. 
The BB gave this directive in a circular issued on Monday, signed by its general manager Md Shah Alam. 
According to the circular, the deposited money could be paid to a single or multiple nominees mentioned in the account after the demise of the depositor or depositors. It also said the depositors could choose new nominees in place of the old ones at any time. 
As per Section-1 of the Bank Company Act, all single or joint account holders can predetermine who, in case of underage nominees, would be entitled to receive the deposited money, the circular noted. 
In an earlier circular on April 19, the BB had 
directed all scheduled banks to pay deposited money to the nominee or nominees after the account holder's death. The directive was issued to the managing directors or chief executive officers of all the scheduled banks. 
According to sources at the central bank, the BB authorities issued the circulars against a High Court (HC) verdict that had established the right of legal heirs as against that of nominees. 
On Aprl 3 last year, an HC bench had ruled that after the death of a person, the money deposited in his/her account(s) would go to his/her heirs instead of nominees. 
In its verdict, the HC bench, comprising Justice Naima Haider and Justice Khizir Ahmed Choudhury, said the nominee was only a trustee and agent as per the law. 
The deposited money will have to be divided among the depositor's legal heirs following the Mohammedan law, the court added. 
After the verdict, senior Supreme Court lawyer advocate MI Farooqui, counsel for the petitioners, told The Independent that  nominees were not eventual owners of a depositor's money. The deposited money must be divided among the legal heirs as per the provisions of the Mohammedan law, he said. 
Monjurul Haq Chowdhury and his two sisters moved the High Court, seeking review of the lower court’s rejection of their application  that sought succession certificates and the favour given to their stepmother Bilkis Ara Begum as the lone inheritor of Tk 30 lakh in the bank account of their late father Md Shahidul Haq Chowdhury. 
Shahidul Haq Chowdhury, former Bangladesh Bank (BB) deputy director, had died on September 23, 2013. He made his second wife, Bilkis, the nominee of his account at the BB’s Motijheel office in which he had deposited savings certificates worth Tk 30 lakh. 
The HC directed the BB to distribute the money of the deceased among his legal heirs on the basis of the succession certificates to be issued by the lower court. 

news:the independent/15-jun-2017


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