Need banking related advice as PSU bank is creating nuisances

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Deal Cadet
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I know a family where someone died recently. He had been doing all the banking related stuffs for the family and nobody apart from him does not know anything about banking.

The family consists of mother(very old), unmarried brother, the person himself, his wife and his daughter(adult-married).

His mother, brother have joint accounts with him as 'Either-OR' and he is the 2nd holder in those accounts. There are some FDs/MIS where he is also joint holder.

Now the family wants to remove the late person as 2nd holder and add his daughter as 2nd holder in the same accounts(accounts of mother and brother). This to ensure the younger person will have access to account always. Also, those bank accounts are being used for receiving some govt benefits for the first holder(s), hence closing of account is simply not possible.

Now the psu bank(Union Bank of India) is saying, we would close those two accounts and open new accounts and would transfer all the funds in new accounts. They are denying removing the late person from 2nd holder and add his daughter as 2nd holder citing "as per rules". 

I think this is some decent ask and should be same for all banks as this is kind of universal banking rule. Removing late person from 2nd holder and replace with someone withing the family - is there any problem with this ?

Is there someone/bankers in DD who can help me understanding the in-principle or technical problem here ? Else, what can be done before RBI ombudsman(I would consider as last resource). 

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Pro Entertainer Pro Entertainer
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Open new account with all those members and TRANSFER the funds in it.

Keep the old account but without anything in it for those govt benefits.

This should be simple right?😊

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Analyst Analyst
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Yes, certain banks haven't upgraded their system.

So, they aren't able to perform that action.

an example

A pensioner died, had Joint Account with wife... was 1st AC holder... now, (UCO Bank) in this case hasn't any system to remove that late person name, if tried to perform that, it'll not happen as their system doesn't allow to change. So, basically they put a nominee in that (in case of 2nd and last holder of account gets accidental death/like that). It might be that there would be option at TM level but at branch, they can't execute.

.

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Deal Cadet Deal Cadet
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What is TM ?


Irrelevant question - are you banker  at uco? I get hold of a scale 3 officer of Union Bank he told me it should be possible.


In my case, the late person is 2nd holder.

Helpful Helpful
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i my opinion best option is to withdraw all funds and open a new account

Deal Cadet Deal Cadet
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The accounts are receiving govt benefits and its very hard to change those. It could be a task of lifetime. 
Benevolent Benevolent
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Threaten them you will move all accounts to another bank, they will do it.

post your question in some banking forum or in Quora

Deal Cadet Deal Cadet
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Can you give me some ideas where to post apart from quora.
Benevolent Benevolent
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There are some restrictions with the joint accounts, for eg:

1. Some banks don't give the feature to convert joint to single. 

2. Some banks give features to convert joint to single but the second holder can be removed not the primary first holder.

So, Even if you convert the joint to single, then converting back that single to joint might not be possible in the bank. Thus, they are giving the correct advice as per my understanding.

My advice will be:

1. To convert the existing joint accounts to single accounts (or close the account if you're only interested in the joint account)

2. To open a new joint account as suggested by banks. 

Deal Cadet Deal Cadet
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My friend is working in PNB, he said  he thought the process family wants  i.e. removing late person 2nd holder and adding someone else as 2nd holder is a cumbersome task for them. It involves more processes, more levels of authorizations etc.

He said it's very common across the joint account related processes.

Pro Entertainer Pro Entertainer
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Open new account with all those members and TRANSFER the funds in it.

Keep the old account but without anything in it for those govt benefits.

This should be simple right?😊

Deal Cadet Deal Cadet
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That should be fine. They didn't mention this solution though.
Deal Cadet Deal Cadet
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As mentioned above by @P_A_N_K_A_J .simply remove the 2nd holder name and all balance from the account to a new account. keep the old account as it is.

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