Claiming bank deposits and shares of a deceased relative in India can be a complex process, especially for Non-Resident Indians (NRIs). With multiple legal requirements, documentation, and procedural steps involved, understanding the correct process is crucial to ensure smooth transfer of assets. This article provides a clear, step-by-step guide on how to claim bank deposits and shares of deceased relatives in India, keeping in mind Indian legal principles, government guidelines, and relevant statutes.

Understanding the Legal Framework

In India, the transfer of assets of a deceased person is primarily governed by the Indian Succession Act, 1925, along with the Banking Regulation Act, 1949, Companies Act, 2013, and the rules prescribed by the Reserve Bank of India (RBI) for NRIs. The process varies depending on whether the deceased left a will (testate) or not (intestate).

  • Testate succession: If the deceased has left a valid will, the assets are distributed according to the instructions in the will.

  • Intestate succession: If there is no will, the estate is distributed according to the personal laws applicable to the deceased, such as Hindu Succession Act, 1956, Indian Succession Act, or Muslim Personal Law, depending on religion.

For NRIs, additional considerations apply under FEMA (Foreign Exchange Management Act, 1999), particularly regarding repatriation of funds outside India.

Key Documents Required for Claiming Bank Deposits and Shares

To claim bank deposits and shares as an NRI, certain documents are mandatory. Having these ready can simplify the process:

  1. Death Certificate: Issued by the municipal authority or relevant government body.

  2. Proof of Relationship: Legal proof showing the claimant’s relationship with the deceased, such as birth certificate, marriage certificate, or family registry.

  3. Will or Succession Certificate:

    • If a will exists, the claimant must produce the original will.

    • If there is no will, a succession certificate from a competent civil court is required.

  4. No Objection Certificate (NOC) from Co-Applicants: Required if other heirs are involved.

  5. PAN Card: Mandatory for income tax purposes.

  6. Bank Account Details: For deposit transfer, including account number, IFSC code, and bank name.

  7. KYC Documents: Passport, overseas address proof, and NRI status proof for regulatory compliance.

Process to Claim Bank Deposits of Deceased Relatives

Claiming bank deposits involves several legal and procedural steps:

1. Inform the Bank

Notify the bank of the account holder’s death by submitting the death certificate along with a request letter.

2. Determine the Mode of Transfer

The bank may release funds through:

  • Joint account rules: If the account is jointly held with “either or survivor” clause, the surviving account holder can claim the funds directly.

  • Nomination: If the deceased had nominated the claimant, the bank transfers the deposit to the nominee after verifying documents.

  • Succession Certificate/Probate: In absence of nomination, the bank requires a succession certificate or probate of will.

3. Apply for Succession Certificate or Probate

If the deceased did not nominate or left a will:

  • Apply to the district civil court for a succession certificate (for movable assets like bank deposits) or probate (if a will exists).

  • The court examines claims of heirs and issues the certificate after verification.

4. Submit the Certificate and KYC Documents

Once the succession certificate or probate is obtained, submit it to the bank along with your identity and address proof.

5. Fund Transfer and Tax Compliance

  • The bank verifies documents and transfers the funds to your account.

  • NRIs must ensure compliance with TDS (Tax Deducted at Source) rules on interest income earned on inherited deposits.

Process to Claim Shares of Deceased Relatives

Claiming shares or securities of a deceased relative has additional regulatory steps under SEBI regulations and the Companies Act, 2013:

1. Verify Share Ownership

Check whether shares are held in demat form or physical certificates.

  • For demat shares, the process is governed by Depository Participant (DP) guidelines.

  • For physical shares, submission to the company’s registrar is required.

2. Check for Nomination

  • If shares have a registered nominee, the nominee can claim them directly by submitting a death certificate and KYC documents.

3. Apply for Transmission of Shares

  • In absence of nomination, heirs must apply for transmission of shares along with:

    • Succession certificate or probate of will

    • Death certificate of the shareholder

    • KYC documents of the claimant

  • Companies or DPs process the request after verification, updating the ownership in favor of the legal heir.

4. Compliance with SEBI Guidelines

  • NRIs must follow FEMA rules when they transfer shares, especially if they plan to repatriate the shares abroad.
  • NRIs may need to file Form 15CA/15CB with the Income Tax Department before transferring proceeds outside India.

Practical Tips for NRIs

  • Check for nominations: Many banks and companies allow NRIs to be nominated. A nomination simplifies asset transfer.

  • Maintain clear documentation: Original death certificates, KYC documents, and proof of relationship speed up the process.

  • Hire a local representative: NRIs can authorize a trusted relative or professional in India through a Power of Attorney (PoA) to handle claims.

  • Stay updated on tax obligations: NRIs must pay TDS on interest income or capital gains arising from inherited assets.

  • Use certified copies: For overseas submission, notarized and apostilled documents are usually required.

Legal References and Key Provisions

  1. Indian Succession Act, 1925: Governs wills and probate.

  2. Hindu Succession Act, 1956: Applicable for intestate succession among Hindus.

  3. Muslim Personal Law: Governs inheritance among Muslims.

  4. Banking Regulation Act, 1949: Banks’ authority to release funds to heirs.

  5. Companies Act, 2013 & SEBI Regulations: Governs transmission of shares and securities.

  6. FEMA, 1999: Regulates repatriation of funds and shares abroad for NRIs.

FAQs

Q1. Can an NRI claim bank deposits of a deceased parent without going to India?
Yes, through a Power of Attorney (PoA) granted to a trusted representative in India. All documents must be notarized and apostilled.

Q2. What is the difference between a succession certificate and probate of will?
A succession certificate is issued when there is no will, authorizing heirs to claim movable assets. Probate of will validates an existing will and allows asset transfer as per the deceased’s instructions.

Q3. Are TDS and taxes applicable on inherited deposits and shares?
Interest earned on inherited deposits is taxable, and TDS is applicable. Capital gains on shares are also subject to tax, depending on holding period and asset type.

Q4. Can bank deposits and shares be transferred jointly if the deceased had multiple nominees?
Banks and companies release funds only after all nominees or heirs provide consent or the court issues a succession certificate addressing multiple claimants.

Q5. How long does it take to claim inherited assets in India as an NRI?
Time varies based on documentation, court proceedings, and bank or company verification. Typically, with proper documents, the process may take 2–6 months.

For NRIs, understanding how to claim bank deposits and shares of deceased relatives in India requires careful attention to legal procedures, documentation, and tax compliance. Whether the transfer is via nomination, succession certificate, or probate, ensuring proper adherence to Indian laws simplifies the process and prevents disputes among heirs. Maintaining clear records, following official guidelines, and staying informed about regulatory requirements are essential for smooth and lawful asset transfer.

By following the steps outlined in this guide, NRIs can navigate the process confidently while remaining fully compliant with Indian legal and financial regulations.