Welcome LGBTQ Community: No Restrictions on Opening Joint Bank Accounts
In a groundbreaking move, the Union finance ministry issued an advisory on Wednesday, August 28, clarifying that individuals from the LGBTQ community face no restrictions in opening joint bank accounts or nominating their partners as beneficiaries.
The advisory comes in response to a growing need for inclusivity and equal opportunities for all, regardless of sexual orientation. It states, “There are no restrictions for persons of the queer community to open a joint bank account and also to nominate a person in the queer relationship as a nominee to receive the balance in the account in the event of the account holder.”
This progressive step is in alignment with the Supreme Court’s order from October 17, 2023, in the case of Supriyo@Supriya Chakraborty and another vs Union of India. Furthermore, the Reserve Bank of India (RBI) has issued a clarification to all scheduled commercial banks on August 21, 2024, regarding the same matter.
Going back to 2015, the RBI had already directed banks to include a separate column for the ‘third gender’ in their forms and applications, enabling transgender persons to access banking services. As a result, several banks have introduced specialized services for the transgender community.
For example, ESAF Small Finance Bank Ltd launched the ‘Rainbow Savings Account’ in 2022, offering exclusive features such as high savings rates and advanced debit card facilities to transgender customers.
Following the Supreme Court judgment in October 2023, the Centre established a six-member committee chaired by the cabinet secretary in April 2024 to address various issues concerning the queer community. The committee’s mandate included examining measures to prevent discrimination against LGBTQ+ people in accessing goods and services and ensuring their protection from violence, harassment, or coercion.
