Nominee Did Not Receive Money Even After Account Holder’s Death: How and Where to File a Complaint

A recent complaint involving HDFC Bank, one of India’s leading private sector banks, has raised serious concerns among customers about delays in nominee settlement after the death of an account holder. The issue highlights how procedural delays can cause emotional distress and financial hardship for families, even when all rules and documentation are followed.

Case That Sparked Public Attention

The matter came into the spotlight after financial journalist Veena Venugopal shared her experience on social media platform X. She revealed that more than a year after her husband’s death, the bank had still not transferred the funds from his account to their daughter, who is the registered nominee.

According to Venugopal, she submitted all the required documents—such as the death certificate and claim forms—immediately after her husband’s passing. Despite this, the settlement process remained incomplete for months, with repeated requests from the bank for additional paperwork.

Repeated Documentation and Lack of Accountability

Venugopal stated that the bank initially informed the family that the documents could not be traced due to staff changes. Subsequently, the family was asked to resubmit all documents, including:

• Notarised papers on stamp paper

• Fresh claim forms

• Details of auto-debit transactions that continued after the account holder’s death

In addition, the bank reportedly asked the family to seek permission from the insurance company linked to certain auto-debit mandates, further complicating the process.

The situation became especially stressful for the nominee, Venugopal’s 20-year-old daughter, who had to visit the bank branch multiple times. Each visit involved explaining the entire case again to new bank officials. Importantly, Venugopal clarified that there was no dispute over the account, nor were there any other legal claimants.

Comparison With Another Bank’s Process

Highlighting inconsistencies in banking practices, Venugopal compared this experience with another account her husband held at IndusInd Bank. That account, she said, was settled within two weeks and in a single visit, underscoring how efficient nominee settlement is possible when processes are followed properly.

Why Delays in Nominee Settlement Are a Serious Issue

Although Venugopal mentioned that her family is not financially dependent on the delayed funds, she emphasized a crucial point—many families rely heavily on such money after losing their primary breadwinner. In such cases, prolonged delays can cause severe financial stress and disrupt daily life.

Nominee settlement delays not only affect families emotionally but also go against the spirit of banking regulations designed to protect customers during vulnerable times.

Bank’s Response to the Complaint

Following the public disclosure of the issue, HDFC Bank responded on January 1 via social media. The bank expressed regret over the inconvenience caused and requested account-related details to investigate the matter. It assured that the complaint would be addressed on a priority basis.

While such responses are encouraging, customer advocates argue that reactive action after public pressure should not be the norm, especially for matters as sensitive as nominee claims.

What Do Banking Rules Say?

As per existing banking regulations and RBI guidelines, banks are required to:

• Settle nominee claims within 15 days after receiving all necessary documents

• Ensure minimal documentation in cases where a registered nominee exists

• Pay interest on the amount if there is an unjustified delay

If a bank fails to resolve a nominee claim in a timely manner, customers have the right to escalate the issue.

Where to File a Complaint if Nominee Settlement Is Delayed

If you face a similar situation, here are the steps you can follow:

1. Write to the Bank’s Grievance Redressal Department
   File a written complaint with supporting documents and keep acknowledgment proof.

2. Escalate to the RBI Banking Ombudsman
   If the bank does not provide a satisfactory response within the stipulated time, you can approach the RBI Banking Ombudsman for resolution.

3. Use Online Complaint Portals
   Many banks and the RBI offer online grievance portals that make tracking complaints easier.

Key Takeaway for Account Holders and Nominees

This case serves as a reminder for customers to:

• Ensure nominee details are correctly registered and updated

• Maintain copies of all account-related documents

• Be aware of their rights under banking rules

For banks, it underscores the importance of efficient, compassionate, and timely handling of nominee claims, especially during periods of personal loss.

Delays in nominee settlements are not just administrative lapses—they can deeply affect families at their most vulnerable moments. Knowing where and how to complain can make a crucial difference in ensuring justice and timely access to rightful funds.