What changed
RBI clarified that banks must accept guardianship certificates from Local Level Committees under the National Trust Act, 1999, in addition to those from District Courts under the Mental Health Act, 1987. This ensures disabled persons covered by the Act can have their legal guardians open and operate bank accounts without hindrance.
What it means for you
For StCBs/DCCBs, this removes ambiguity about accepting guardianship certificates from Local Level Committees, reducing compliance risk. Banks must update their account opening procedures to recognize these certificates and train staff to guide parents/relatives smoothly. Non-compliance could lead to customer grievances and regulatory scrutiny.
What you must do
- Update account opening policies to accept guardianship certificates from both District Courts and Local Level Committees under the National Trust Act, 1999.
- Train branch staff on recognizing valid guardianship certificates and assisting parents/relatives of disabled persons.
- Ensure branches display the list of Local Level Committees (enclosed with the circular) for reference.
- Acknowledge receipt of this circular to the respective RBI Regional Office.
Who it affects
State Co-operative Banks (StCBs), District Central Co-operative Banks (DCCBs), Branch staff handling account openings, Disabled persons with autism, cerebral palsy, mental retardation, or multiple disabilities and their guardians
What types of guardianship certificates are now acceptable for opening bank accounts?
Banks must accept certificates issued by District Courts under the Mental Health Act, 1987, or by Local Level Committees under the National Trust Act, 1999, for persons with autism, cerebral palsy, mental retardation, or multiple disabilities.
Do we need to verify the list of Local Level Committees?
Yes, RBI has provided a list of Local Level Committees formed in 499 districts (as of February 2007). Branches should use this list to verify the issuing authority.
What if a guardian's certificate is from a district not on the list?
The list is as of February 2007; committees may have been formed later. If in doubt, consult your regional office or the National Trust for guidance.