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Closing fixed deposit when father is not traceable

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Closing fixed deposit when father is not traceable. Based on negotiation prior to the divorcee decree, an account of Rs.2.5 lakhs was deposited in FD in the name of my minor daughter by her father (my ex husband) in Syndicate Bank. Now this bank is merged with Canara Bank. The interest of the deposit amount was credited to my account quarterly for her maintenance. Now she is completed 18 years. For her studies we want to close the FD and use the amount. The Canara bank says that her father has to attend for closing the FD. The divorcee was 13 years back and we do not know the whereabouts of her father. Kindly advise what we can do to get the amount. Thanks

Asked from: Telangana

In this situation, you should initiate a civil suit in the court where the divorce was decreed. The fixed deposit was established under the court’s direction and with its approval. Consequently, the court possesses the authority to instruct the bank to liquidate the fixed deposit and release the funds to the intended recipient, the girl for whom the fixed deposit was created. Closing of fixed deposit through a legal process is necessary specially when your father is not traceable.

General process about closing of fixed deposit

In India, handling a fixed deposit (FD) when the account holder is not traceable involves several legal and procedural steps to ensure that the bank adheres to regulations and the rightful owner or beneficiaries can claim the deposit. The process of closing fixed deposit is governed by guidelines from the Reserve Bank of India (RBI), the Banking Regulation Act, 1949, and the Limitation Act, 1963.

First, banks attempt to contact the account holder using the provided contact details, including letters, emails, or phone calls. If the account holder remains untraceable for a period, typically one to two years, the FD account is classified as dormant or inactive. If the FD remains unclaimed for ten years from the date of maturity, the amount is transferred to the Depositor Education and Awareness Fund (DEAF) maintained by the RBI, as per the guidelines.

If the account holder is not traceable and the fixed deposit matures, legal heirs or nominees can claim the deposit. Required documents for closing fixed deposit, usually include a death certificate (if applicable), a legal heir or succession certificate, identity proof, and a duly filled claim form from the bank. Sometimes, banks may also publish a notice in newspapers to inform the account holder or heirs about the unclaimed deposit.

Each bank may have specific internal policies towards closing fixed deposit and for handling unclaimed deposits, so it’s essential to check with the particular bank for their exact process. Ultimately, the legal framework ensures that there is a clear pathway for rightful claimants to access the deposit, and if no claims are made, the amount is transferred to the DEAF after a specified period. For more legal help please visit Kanoon India.

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Shivendra Pratap Singh

Advocate

Founded Kanoonirai.com in 2014, I have been committed to delivering reliable and practical online legal advice in India.

With nearly two decades of experience as a practicing lawyer in Lucknow, I have been actively representing clients before the High Court of Judicature at Allahabad, its Lucknow Bench, as well as District Court since 2005.

My legal expertise spans across criminal law, matrimonial disputes, service matters, civil litigation, and property-related cases.

Through Kanoonirai.com, I aim to make professional legal help in Lucknow and across India more approachable, transparent, and convenient for individuals seeking trusted solutions to their legal issues.

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