In a landmark move towards financial inclusivity, the Union Finance Ministry has announced that individuals from the LGBTQ+ community can now open joint bank accounts and nominate their partners in queer relationships as beneficiaries. This announcement comes as a part of a broader initiative to ensure equal rights for LGBTQ+ individuals in financial matters.
The advisory, issued by the Department of Financial Services under the Finance Ministry, clearly states, "There are no restrictions for persons of the queer community to open a joint bank account and also to nominate a person in a queer relationship as a nominee to receive the balance in the account in the event of the account holder?s demise." This clarification aligns with the Supreme Court's directive from October 17, 2023, in the landmark case of Supriyo @ Supriya Chakraborty and Another vs. Union of India.
In response to the Supreme Court's order, the Reserve Bank of India (RBI) also issued a clarification to all scheduled commercial banks on August 21, 2024, reinforcing that LGBTQ+ individuals must not face any barriers in accessing banking services. This step builds on previous efforts by the RBI, which in 2015 mandated the inclusion of a 'third gender' column in banking forms to better serve transgender individuals.
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Some banks have already taken initiatives to cater to the LGBTQ+ community. For instance, ESAF Small Finance Bank Ltd. launched the 'Rainbow Savings Account' in 2022, specifically designed for transgender individuals, offering benefits such as high savings rates and advanced debit card facilities.
This latest directive also follows the government's efforts to further protect LGBTQ+ rights. In April 2024, a six-member committee led by the Cabinet Secretary was established to address discrimination and violence against the LGBTQ+ community, ensuring equal access to goods and services.
This progressive move by the government and the RBI marks a significant step towards financial equality, ensuring that LGBTQ+ individuals have the same rights and opportunities as any other citizen in India.
