Centre Says No Restrictions For Queer Community To Open Joint Bank Account

The Finance Ministry on August 29 clarified that there are no restrictions preventing members of the LGBTQ community from opening joint bank accounts or nominating a partner in a queer relationship as a nominee. This clarification ensures that people in the queer community can name their partners to receive the balance in the account in case of the account holder's demise.

LGBTQ+ Community Can Open Joint Accounts and Nominate Partners: Finance Ministry

The advisory from the ministry was issued in response to the Supreme Court's decision on October 17, 2023, in the case of Supriya Chakraborty and Another vs. Union of India (Writ Petition Civil No. 1011/2022). This ruling reaffirmed the rights of individuals in the LGBTQ community to access banking services without discrimination.

Further support for this clarification came from the Reserve Bank of India (RBI), which issued a similar notice to all scheduled commercial banks on August 21, 2024. This notice ensures that banks are informed and compliant with these inclusive policies.

In 2015, the RBI instructed banks to include a separate 'third gender' column in all forms and applications, making it easier for transgender individuals to open bank accounts and access related financial services. This directive led several banks to introduce services specifically tailored to the needs of the transgender community.

One such initiative was the 'Rainbow Savings Account' launched by ESAF Small Finance Bank Ltd. in 2022. This account, designed exclusively for the transgender community, offered various benefits, including higher savings rates and advanced debit card features. These steps highlight the progress made in providing equitable financial services to all individuals, regardless of their gender identity.

In the wake of the Supreme Court's October 2023 judgement, the Central Government took further steps to address the needs of the LGBTQ+ community. In April 2024, the government established a six-member committee chaired by the Cabinet Secretary. This committee was tasked with examining issues related to the queer community and recommending measures to prevent discrimination and ensure access to goods and services without prejudice.

The committee is also responsible for suggesting ways to protect the LGBTQ+ community from violence, harassment, and coercion, further reinforcing the government's commitment to creating a safer and more inclusive environment for all citizens.