The Finance Ministry has clarified that there are no restrictions on opening joint bank accounts for members of the LGBTQ community.
Additionally, individuals from this community can designate their partners as nominees.
This information was released in an advisory by the Ministry on August 28.
Advisory Issued Following Supreme Court Order
This advisory was issued in response to a Supreme Court order dated October 17, 2023,
in the case of Supriya Chakraborty and others vs Union of India (Public Interest Litigation Case No. 1011/2022).
The Department of Financial Services of the Finance Ministry also noted that the Reserve Bank of India (RBI) had previously issued a clarification on this matter to all scheduled commercial banks on August 21, 2024.
Support for the Transgender Community
In 2015, the RBI directed all banks to include a ‘third gender’ option in their forms and applications,
making it easier for transgender individuals to open bank accounts and access related services.
Following this, many banks introduced services tailored to the transgender community.
For example, ESAF Small Finance Bank Limited launched the ‘Rainbow Savings Account’ in 2022,
offering benefits like high savings rates and advanced debit card facilities.
Government’s Ongoing Efforts
After the Supreme Court’s decision in October 2023,
the Central Government formed a 6-member committee led by the Cabinet Secretary in April 2024to investigate issues faced by the LGBTQ community.
