LGBTQ+ individuals can open joint bank accounts: Finance Ministry
The Finance Ministry has said that there are no restrictions on LGBTQ+ individuals opening joint bank accounts. The advisory was issued following a Supreme Court order dated October 17, 2023, concerning the case of Supriyo@Supriya Chakraborty and another vs Union of India. In a 3:2 verdict, the SC refused to grant legal recognition for queer marriages, saying it is up to the legislature to decide. However, it urged the Centre to take steps to eliminate discrimination faced by queer couples.
RBI's role in promoting financial inclusion for LGBTQ+ community
"This is to clarify that 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," the advisory read. The advisory also mentioned that a clarification in this regard has been issued by the Reserve Bank of India (RBI) to all commercial banks on August 21.
Banks' initiatives to cater to the transgender community
Even before the clarification, the RBI had directed banks to include a "third gender" column in all forms and applications, facilitating transgender individuals to open bank accounts and access services. This RBI's directive in 2015 led to several banks introducing services specifically for the transgender community. In 2022, ESAF Small Finance Bank Ltd launched a 'Rainbow Savings Account' scheme exclusively for this demographic. The scheme offered various features, including high savings rates and advanced debit card offers.
Centre's committee to address LGBTQ+ community issues
Following the Supreme Court ruling on October 17, 2023, the Centre formed a six-member committee in April 2024. Chaired by the Cabinet Secretary, this committee was tasked with examining various issues related to the LGBTQ+ community. The panel's mandate included finding measures and steps to ensure non-discrimination and equal access to services for the LGBTQ+ community, as well as addressing concerns of violence, harassment or coercion.
