In a significant move towards equality, India’s Finance Ministry has confirmed that there are no restrictions for individuals belonging to the LGBTQ community to open joint bank accounts or nominate a person in a queer relationship as a beneficiary.
The ministry issued an advisory on 28 August, clarifying that queer individuals can now open joint accounts and nominate their partners to receive the account balance in the event of the account holder’s death.
This clarification follows the Supreme Court’s October 2023 ruling in the case of Supriyo Chakraborty and another vs Union of India, which directed the government to consider equal entitlements for queer partners.
The Reserve Bank of India (RBI) also issued a similar clarification to all commercial banks on 21 August, reinforcing the message. The RBI has been proactive in this regard since 2015 when it mandated banks to include a ‘third gender’ option in forms and applications, enabling transgender individuals to access banking services.
This initiative has spurred many banks to introduce products tailored to the LGBTQ community, such as ESAF Small Finance Bank Ltd’s ‘Rainbow Savings Account’ scheme, launched in 2022, which offered enhanced savings rates and other benefits to the transgender community.
Following the Supreme Court’s ruling, India’s Union government led by Prime Minister Narendra Modi formed a six-member committee in April 2024, chaired by the Cabinet Secretary, to explore ways to ensure the LGBTQ+ community is not discriminated against and has equal access to services. The committee’s mandate includes identifying measures to protect the community from violence and harassment.
This latest clarification from the Finance Ministry is seen as a step forward in ensuring equal rights and access to financial services for the LGBTQ community.
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