Finance Ministry announced on August 29, that there are no restrictions preventing LGBTQ+ individuals from opening joint bank accounts or designating a partner in a queer relationship as a nominee.
The advisory, dated August 28, clarifies that individuals in the LGBTQ+ community can open joint accounts and assign a partner as a nominee to inherit the account balance if needed. This clarification follows the Supreme Court’s order on October 17, 2023, in the case of Supriyo@Supriya Chakraborty and another vs. Union of India (Writ Petition Civil No. 1011/2022).
Additionally, on August 21, 2024, the Reserve Bank of India (RBI) issued a clarification to all scheduled commercial banks regarding these policies. The RBI had previously directed banks in 2015 to include a ‘third gender’ option in their forms to facilitate account opening and access to banking services for transgender individuals.
Several banks have since introduced services for the transgender community, including ESAF Small Finance Bank Ltd., which launched a ‘Rainbow Savings Account’ in 2022 with features such as competitive interest rates and advanced debit card options.
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In response to the Supreme Court’s judgment, the Centre established a six-member committee chaired by the Cabinet Secretary in April 2024. This panel is responsible for reviewing and addressing issues related to the LGBTQ+ community, focusing on preventing discrimination and ensuring protection from violence, harassment, and coercion.
