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Synopsis

The Central government has issued an advisory affirming the rights of LGBTQIA+ individuals to open joint bank accounts and nominate their queer partners as beneficiaries. The Ministry of Finance released the clarification on August 28, aligning with the Supreme Court's constitution bench judgment in the case of ‘Supriyo @ Supriya Chakraborty & Anr v. Union of India’.

“There are no restrictions for persons of the Queer community to open a joint bank account and also to nominate a person in queer relationship as a nominee to receive the balance in the account, in the event of death of the account holder,” the advisory mentioned. 

The advisory addresses the rights of queer individuals in financial matters, ensuring they can access joint bank accounts and nominate their partners as nominees. This move follows the Supreme Court's recognition of the importance of defining the rights and entitlements of queer couples, despite refusing to legalise same-sex marriage.

The Supreme Court had noted the Central government's commitment to establishing a Committee, chaired by the Cabinet Secretary, to clarify and expand the entitlements of queer couples. The recent advisory directly addresses this directive, stating that there are no restrictions for LGBTQIA+ individuals to open joint bank accounts or nominate their partners as beneficiaries.

The Reserve Bank of India also issued a similar clarification to all Scheduled Commercial Banks on August 21, ensuring uniform compliance across the banking sector.