Challenges of Account Freezing
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If a bank freezes an account immediately after a death, what happens to all the moving parts, such as pending bills and tax filings? I’m trying to determine whether there’s a clear process that ensures the funds reach the family quickly, rather than getting stuck in paperwork for months.
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You've identified a genuine issue. When a person passes away, a bank freezes their account to secure the funds until the legal heir comes forward.
The good news is that the RBI now requires banks to pay nominees within 15 days once the paperwork is submitted. This prevents delays that could last for months. Just make sure the death certificate and IDs are ready so you can settle bills quickly.