Updated on March 16, 2023
Deceased accounts refer to the bank accounts that are in the name of persons that are no longer alive. These accounts may not be closed immediately but they have to be frozen immediately upon notification of the status of the accountholder. The banks will have to keep the money and the belongings held in the bank locker safe and will have to hand it over to the nominees or the legal heir as the case may be at the earliest upon completion of all the bank formalities.
The bank will have to confirm the status of the account holder with the help of a death certificate and other KYC details like photo ID proof. If the bank account is attached in any ongoing legal battle, the same cannot be handed over to the legal heirs without the permission of the courts. The banks are obliged to give preference to creditors over the nominees and legal heirs in case of any disputes or outstanding liabilities of the deceased account holder.