LGBTQ+ Community Gains Equal Access to Joint Bank Accounts: Centre’s New Advisory
Inclusive Banking: A Significant Step Forward for LGBTQ+ Rights
In a landmark move, the LGBTQ+ community in India now has the freedom to open joint bank accounts and designate partners in queer relationships as nominees. This progressive change comes following an advisory issued by the Union Finance Ministry, which clarifies that no restrictions exist for LGBTQ+ individuals in these matters. The Ministry stated, “Persons in queer relationships can open joint bank accounts and nominate their partners to receive the account balance in the event of the account holder’s passing.”
This directive aligns with a Supreme Court ruling from October 17, 2023, in the case of Supriyo@Supriya Chakraborty and another vs. Union of India (Writ Petition Civil No.1011/2022), reflecting a growing recognition of the rights of LGBTQ+ individuals.
RBI’s Supportive Stance
The Reserve Bank of India (RBI) also reinforced this inclusive approach with a clarification sent to all scheduled commercial banks on August 21, 2024. This follows the RBI’s 2015 directive, which mandated banks to introduce a ‘third gender’ option in forms and applications, enabling transgender individuals to open bank accounts and access financial services without hindrance.
Dedicated Services for LGBTQ+ Clients
In response to the 2015 directive, several banks began offering services specifically for transgender individuals. Notably, ESAF Small Finance Bank Ltd introduced the ‘Rainbow Savings Account’ in 2022, tailored for the transgender community, featuring attractive savings rates and enhanced debit card options.
Following the Supreme Court’s October 2023 judgment, the Centre took further steps by establishing a six-member committee, led by the Cabinet Secretary, in April 2024. This committee was tasked with addressing issues related to the queer community, ensuring they face no discrimination in accessing goods and services, and safeguarding them from violence, harassment, or coercion.
