LGBTQ Joint Bank Account: The Finance Ministry has clarified in a historic way that members of the LGBTQ community can now register joint bank accounts and designate their partners as beneficiaries without any limitations. This action is a component of the government’s continuous initiatives to support diversity and guarantee that everyone has equitable access to financial services.
Inclusive Banking for the LGBTQ Community
The Finance Ministry, in an advisory released on August 28, stated, “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 advisory comes in response to a Supreme Court order from October 17, 2023, in the case of Supriyo@Supriya Chakraborty and another vs Union of India.
RBI’s Proactive Measures
The guidance further mentioned that on August 21, all commercial banks received a similar clarification from the Reserve Bank of India (RBI). As a pioneer in the realm of inclusive banking, the RBI introduced the “third gender” column in all formats and applications back in 2015. The goal of this action was to ensure that transgender people could use financial services without facing any discrimination. Many banks began providing services catered to the demands of the transgender population after receiving this direction.
Special Initiatives by Banks
According to the RBI’s inclusive stance, a number of banks have launched programmes especially for the LGBTQ community. For instance, the “Rainbow Savings Account” program was introduced by ESAF Small Finance Bank Ltd. in 2022 and is only available to transgender people. This account makes banking more accessible for the transgender community by providing a number of incentives, such as increased savings rates and exclusive debit card offers.
Government’s Ongoing Commitment to LGBTQ Rights
A six-member committee headed by the Cabinet Secretary was established by the Centre in April 2024 as a result of the October 17, 2023, Supreme Court verdict. This committee’s duties include addressing the problems that the LGBTQ+ community faces, making sure that they have equitable access to services, and shielding them from harassment, violence, and discrimination.
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