RBI had advised that in case joint depositors of term/fixed deposits with "Either or Survivor" or "Former or Survivor" mandate intend to allow premature withdrawal of their deposits by one of the joint depositors on the death of the other.

RBI also clarified that such premature withdrawal would not attract any penal charge on survivor.

The joint deposit holders may be permitted to give the mandate either at the time of placing fixed deposit or anytime subsequently during the term/tenure of the deposit. If such a mandate is obtained, banks can allow premature withdrawal of term/fixed deposits by the surviving depositor without seeking the concurrence of the legal heirs of the deceased joint deposit holder.

RBI has also asked banks to inform their existing along with future term deposit holders about the availability of such an option.

It has come to our notice that many of the banks have neither incorporated such a clause in the account opening form nor have they taken adequate measures to make the customers aware of the facility of such mandate, thereby putting the "surviving" deposit account holders(s) to unnecessary inconvenience.

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