Grey area: Queer couples’ joint bank accounts encounter hurdles

On the sixth anniversary of the decriminalisation of Section 377, the community says banking rights remain sketchy

The LGBTQIA+ community has welcomed the finance ministry’s clarification that there are no restrictions for queer couples to open joint bank accounts and nominate their partners as beneficiaries. However, they say the advisory, issued August 28, 2024, doesn’t explain how to go about it.  

They say it’s not clear if they are required to submit a document of any sort or nothing at all to establish their relationship. Some argue there was never a requirement to prove the relationship and banks were acting at their discretion and so, the clarification doesn’t further queer rights. 

Metrolife spoke to seven banks — public and private. They did not know whether an SOP (standard operating procedure) was in the works to process such joint account requests or if individual banks had to formulate one. The Reserve Bank of India (RBI) has issued a similar clarification on queer rights on August 21.

Four banks said currently, joint accounts can only be opened by people who are related, either by blood or by marriage. Parent or spouse names mentioned on documents like Aadhaar, PAN card, passport, and marriage certificate serve as proof. 

Three other banks said they do not look for relationship proof; KYC documents suffice. The branch head of one such bank said, “The RBI guidelines are silent on the relationship requirement. As a result, banks and individual branches act on their own.” 

‘Arbitrary operations’

Due to arbitrary operations and lack of sensitisation at branch level, queer persons are worried if the advisory will be implemented effectively. 

Sougata recalls an instance from 2021, right after a private bank had launched a campaign of inclusive banking for queer couples. The retail professional says, “My partner and I visited their branch on M G Road. I told a staffer ‘We are a queer couple. We want to open a joint account’. He was clueless. He said the officer in charge of the initiative wasn’t around but would call us later. There was no follow up. We lost hope.”

However, through the same initiative of the same bank, Dr Rosy Bose and her partner were able to open a joint account at a Whitefield branch. “They didn’t ask for relationship proof,” says the ophthalmologist. The couple held a joint account with another private bank previously but under the relationship label of ‘others’.

On September 1, the Centre said that LGBTQIA+ couples will be considered part of the same household for the purposes of ration cards. Uma, a transgender rights activist, says this may be one way to demonstrate a queer relationship, if required, but ration cards aren’t easy to come by in the transgender community. “Authorities don’t want to issue it to single persons,” she says. 

‘Legal act needed’

In the absence of a joint account, Manish Thapa says he can’t nominate his partner for life insurance, take a joint home loan, or apply for a visa to travel together. “We don’t have financial co-dependent rights as straight couples do,” says Thapa, who works in the field of product development. He feels the clarification will remain a lip service until the banking act is amended and anti-discriminatory laws are strengthened. 

However, advocate Arvind Narrain who works for queer rights says the clarification can open doors to many possibilities. “Can queer couples now think of taking a joint home loan? Can they look at nominating their partners for health and life insurance?” he asks.