Finance Ministry Affirms LGBTQ Rights to Joint Bank Accounts and Nominee Nominations

The finance ministry announced on Thursday that individuals from the LGBTQ community can open joint bank accounts and nominate partners in queer relationships as nominees. This advisory, dated August 28, clarifies that there are no restrictions for LGBTQ persons to open joint accounts or nominate partners to receive account balances if the account holder passes away.

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Supreme Court Order and RBI Clarification

This advisory follows the Supreme Court's order on October 17, 2023, in the case of Supriyo@Supriya Chakraborty and another vs Union of India Writ Petition Civil No. 1011/2022. The Reserve Bank of India (RBI) also issued a clarification to all scheduled commercial banks on August 21, 2024, reiterating this stance. The Department of Financial Services under the finance ministry released this advisory.

In 2015, the RBI instructed banks to add a third gender column in all forms and applications to assist transgender individuals in opening bank accounts and accessing related services. Following this directive, several banks introduced services tailored for transgender persons.

Initiatives by Banks

For instance, ESAF Small Finance Bank Ltd launched a Rainbow Savings Account in 2022 specifically for the transgender community. This account offers various features such as high savings rates and advanced debit card facilities.

Following the Supreme Court's judgment on October 17, 2023, the Centre formed a six-member committee in April 2024. Chaired by the Cabinet Secretary, this committee was tasked with examining issues related to the queer community.

Committee's Mandate

The panel's responsibilities include identifying measures to prevent discrimination against LGBTQ+ individuals in accessing goods and services. Additionally, it aims to ensure that LGBTQ+ persons do not face threats of violence, harassment, or coercion.

The finance ministry's advisory is a significant step towards ensuring equal rights for the LGBTQ community in financial matters. It aligns with ongoing efforts to eliminate discrimination and promote inclusivity across various sectors.