My father had fixed deposit Rs 50 lakh on Bank of India from 2020 and he received annual int. amount. My father died in Aug 2023; after my father's death, we submitted death & legal hire documents in bank and pre-closed the FD 08.10.2023 they deducted around Rs 12000 & till jun 30 we received qrtly int. amount. From 01-07-23 to 08.10.23 int. amount not given. When I asked bank people in death case pre close should not be any deduct any amount, they are telling it’s system generated we can’t do anything. My question are 1) In death case pre close of FD will be any deduction applicable or not? 2) If it’s not any deduction, where should I give complaint for claiming my amount. Please help

Ans: I can offer some general guidance that may be helpful. This involves lot of legalities and so it's important to consult a legal professional to get advice tailored to your specific situation.

In death cases, is deduction applicable during premature closure of FD?

The treatment of premature closure of fixed deposits in the event of the account holder's death can vary based on the terms and conditions set by the bank and applicable laws. In some cases, there might be no penalty for premature closure in the event of the account holder's death.

Where to file a complaint:

If you believe that the deduction is unjustified, you can take the following steps:

a. Contact the Bank:

- Reach out to the bank's customer service or visit the branch where the FD was held. Explain the situation and inquire about the deduction. Ask for clarification on the specific terms and conditions related to premature closure in the event of the account holder's death.

b. Banking Ombudsman:

- If your concerns are not addressed by the bank, you can escalate the matter to the Banking Ombudsman. The Banking Ombudsman is an official appointed by the Reserve Bank of India to redress customer complaints against deficiencies in banking services.

c. Consumer Court:

- If all else fails, you may consider filing a complaint with the consumer court. Make sure you have all relevant documents and evidence to support your case.

It's crucial to thoroughly review the terms and conditions of the fixed deposit agreement and any applicable laws related to premature closure due to the account holder's death. If you're unsure about the legal aspects, consulting with a legal professional could provide you with specific guidance on how to proceed and protect your rights.