When an account holder passes away, the closure of the account and the disbursement of funds to the nominee or legal heir must follow specific steps. If the account is held at a Sub Office (SO) and marked as INOP (Inoperative), here’s how the process should be carried out:
1. Account Closure with Deceased Sanction
While the account can be closed at the Head Office (HO) with deceased sanction, the procedure involves several stages. The sanctioning authority is generally the Head Postmaster at the HO, even if the account is managed at the SO.
2. Procedure for Account Closure:
Step 1: Submission of Claim by Nominee/Legal Heir
- The nominee or legal heir must submit a claim application to the SO.
- The required documents include the death certificate, identity proof, and succession certificate (if applicable).
Step 2: Verification and Forwarding of Documents
- The SO verifies the documents and prepares the necessary recommendation for the closure of the account.
- These documents are then forwarded to the HO for further processing.
Step 3: Sanctioning by Head Office
- Upon receiving the documents and recommendation from the SO, the HO processes the claim.
- If everything is in order, the HO issues a sanction order authorizing the account closure and the disbursement of funds to the nominee/legal heir.
Step 4: Account Closure and Fund Disbursement
- Once the sanction is received, the SO or HO closes the account and disburses the available funds to the rightful nominee or legal heir.
3. Special Considerations
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If the account has no nomination and exceeds the Sub Postmaster’s (SPM) sanction limit, the sanction must be processed at the Divisional level.
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In the case where the account is marked as INOP (Inoperative), this procedure should still be followed to ensure the proper closure of the account and transfer of funds.
Very simple, right?? In this way the account will be closed in a proper and lawful manner, ensuring that the deceased account holder’s funds are correctly handled and transferred to the rightful party.