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2025 Supreme(Online)(MAD) 7110
HIGH COURT OF MADRAS
VIVEK KUMAR SINGH, J
J.Siva Kumar – Appellant
Versus
The Regional Director, Reserve Bank of India, Fort Glacis, No.16, Rajaji Salai, Chennai - 600 001. – Respondent
W.P.(MD)No.6798 of 2025
For the Appellants/Petitioners: Mr. M.Dhinakar
For the Respondents: Mr.N.Dilip Kumar for R2 and R3
Deposits in the name of a mentally unsound person cannot be closed without their consent as per RBI Rules.
Headnote:The petitioner challenges the communication dated 03.02.2023 from the third respondent bank regarding the closure of fixed deposits. The court noted that RBI Rules require consent from mentally unsound depositors for account closures. The petitioner is directed to obtain a guardianship certificate before proceeding. The court disposed of the writ petition with this directive.
Result: This writ petition is disposed of with the above observations. No costs.
O R D E R
Challenging the communication dated 03.02.2023, issued by the third respondent, the petitioner has come forward with the present writ petition.
2. With the consent of both sides, this Writ Petition is disposed of, at the admission stage itself.
3. The petitioner claims that his parents were government school teachers and retired from service in 1998. Due to ailments, his mother was bedridden. Having received a meager pension and with the petitioner being a private employee, he was unable to support his family. Therefore, he decided to close the fixed deposit of his parents maintained in the third respondent bank. However, the bank refused to do so and requested the petitioner to obtain a guardianship certificate from the competent authority. Aggrieved by this, the petitioner has filed the present writ petition.
4. The learned counsel appearing on behalf of the respondents 2 and 3 submits that, under RBI rules, deposits held in the name of a person, who is mentally unsound and incapable of providing consent cannot be closed without her approval. Additionally, the proceeds cannot be transferred to the legal heir while the depositor is still alive.
5. Heard the learned counsel for the parties and perused the materials on record.
6. Upon considering the submissions, this Court finds that, under RBI Rules, deposits in the name of a mentally unsound person cannot be closed or transferred without their consent. Therefore, the petitioner is required to obtain a guardianship certificate from the competent civil court, after which the bank shall take appropriate action on merits and in accordance with law.
7. This writ petition is disposed of with the above observations. No costs.
14.03.2025 Index : Yes / No Internet : Yes / No PKN To
1. The Regional Director, Reserve Bank of India, Fort Glacis, No.16, Rajaji Salai, Chennai - 600 001.
2. The Authorized Officer, Tamil Nadu Grama Bank Head Office, No.6, Yercaud Road Hasthampatty, Salem - 636 007.
VIVEK KUMAR SINGH, J.
PKN
14.03.2025
