RBI Clarification : Legal Guardianship Certificates issued under the Mental Health Act, 1987

[Vaishnavi Jayakumar]

---------- Forwarded message ----------
From: Soumitra Pathare <spat...@cmhlp.org>
Date: Sun, Feb 14, 2016 at 2:12 PM
Subject: re RBI Master Circular on Customer Service in Banks
To: Soumitra Pathare <spat...@cmhlp.org>

Hi all
Please see attached clarification issued by RBI to its Master Circular, clarifying that guardianship certificate under the Mental Health Act, 1987 is NOT mandatorily required for persons with mental illness to open/operate bank account. 
The Centre for Mental Health Law & Policy of Indian Law Society would like to thank senior officers of Reserve Bank of India and past & serving officers in various Ministries of Govt of India for their help in getting this matter resolved.
Please circulate to your contacts/organizations. In particular, please distribute to user and care-giver organizations to circulate to their members.
warm regards
soumitra

Once you label me, you negate me ~ Soren Kierkegaard
Dr Soumitra Pathare MD DPM MRCPsych PhD
Co-ordinator
Centre for Mental Health Law and Policy
Indian Law Society
Pune 411004
INDIA
Tel: +91-20-25656775
Cell: +91-9370666191
website: www.cmhlp.org

SOURCE : https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8689&Mode=0

RBI/2015-16/321

DBR.No.Leg.BC.78/09.07.005/2015-16 

February 11, 2016

The Chairman/Chief Executives

(All Scheduled Commercial Banks other than RRBs) 

Dear Sir,

Legal Guardianship Certificates issued under the Mental Health Act, 1987 

Please refer to Circular DBOD.No.Leg.BC.84/09.07.005/2013-14 dated January 13, 

2014 wherein banks were advised, inter alia, to take note of the legal provisions in 

the Mental Health Act, 1987 and that they may rely on and be guided by the 

orders/certificates issued by the competent authority, under the Act, appointing 

guardians/ managers for the purposes of opening / operating bank accounts. 

2. It has been brought to our notice that banks are insisting on guardianship 

certificate from all mentally ill persons. In this regard it is clarified that paragraph 2(iii) 

of the aforesaid circular is not intended to mandate banks to insist on appointment

of a guardian as a matter of routine from every person “who is in need of treatment 

by reason of any mental disorder”. It would be necessary for banks to seek 

appointment of a guardian only in such cases where they are convinced on their own 

or based on documentary evidence available, that the concerned person is mentally 

ill and is not able to enter into a valid and legally binding contract. 

Yours faithfully

(Rajinder Kumar)

Chief General Manager

___________________________________________________________________________

Department of Banking Regulation,Central Office, 12th Floor, Central Office Building, ShahidBhagat Singh Marg,, Mumbai,400001