LGBTQ+ members can open joint accounts in banks: Centre

The Finance Ministry has announced that there are no longer any restrictions preventing LGBTQ+ individuals from opening joint bank accounts or nominating their partners as beneficiaries. This advisory, shared on August 28, clarifies that people in queer relationships are fully entitled to manage joint finances and nominate their partners to receive the balance in the account in case of the account holder’s demise.

This update comes in response to a Supreme Court order dated October 17, 2023, in the case of Supriyo@Supriya Chakraborty and another vs Union of India. The court's ruling emphasized the need for inclusivity and equal financial rights for the LGBTQ+ community, leading to this significant clarification from the government.

The advisory also highlighted that the Reserve Bank of India (RBI) had issued a directive on August 21 to all commercial banks, ensuring that the community’s rights are upheld.

This move aligns with the RBI's 2015 directive, which mandated the inclusion of a separate 'third gender' column in all banking forms and applications, allowing transgender individuals to open bank accounts and access banking services without discrimination.