Answer By law4u team
A succession certificate is not always mandatory to claim bank deposits, but in many cases, especially when there is no nominee or will, it becomes legally necessary. Here’s a detailed explanation: 1. When is a succession certificate required? A succession certificate is generally required when: The deceased person has not nominated anyone for the bank account or deposit. There is no registered will, or the will is disputed. The legal heirs approach the bank to claim movable assets such as bank deposits, fixed deposits (FDs), shares, insurance, or debts owed to the deceased. Under the Indian Succession Act, 1925, a succession certificate is issued by a civil court to identify the rightful legal heir(s) and authorizes them to collect debts and securities on behalf of the deceased. 2. When is it not required? A succession certificate may not be required if: A nominee is registered with the bank; the bank may release the funds directly to the nominee, though the nominee is just a trustee for the legal heirs. There is a probated will and no dispute among the heirs. Some banks accept indemnity bonds, affidavits, or a legal heir certificate (for smaller amounts), especially for government employees' accounts. 3. Bank's policy matters: Banks follow internal guidelines and RBI norms. In the absence of nomination or clear succession documents, banks usually ask for: Succession certificate Legal heir certificate (sometimes accepted for small amounts) Indemnity bond signed by other heirs No-objection certificates (NOCs) from other legal heirs 4. Legal position: The succession certificate gives the holder the authority to receive debts and securities and act as a legal representative, but it does not determine the ownership of property—it only facilitates recovery. Conclusion: A succession certificate is generally required to claim bank deposits if there is no nomination or will. While not always mandatory, it is often insisted upon by banks to avoid disputes. For larger or disputed claims, obtaining a succession certificate is the safest legal route.
