KARACHI: The State Bank as waived the condition of succession certificate for legal heirs in respect of unclaimed deposit refund of deceased account-holders or beneficiaries of instrument of Rs100,000 and below.

The decision was taken to help legal heirs to obtain petty claims without going into the cumbersome process of obtaining succession certificate, the central bank said on Tuesday.

All banks and development finance institutions (DFIs) can initiate and submit refund claim cases of deceased account-holders or beneficiaries of instrument of Rs100,000 and below to the State Bank. Such cases may be submitted without obtaining succession certificate, if refund claims and the genuineness of legal heirs are found to be satisfactory, says a circular.

For the purpose, the banks/DFIs will obtain indemnity bond on a stamp paper of appropriate value from legal heirs along with two personal guarantees.

This should be accompanied by an application from the legal heirs and copies of CNICs and the death certificate of account-holder/beneficiary of the instrument. The indemnity bond has to be invariably signed by all legal heirs.

The banks/DFIs will also indemnify SBP on Rs100-non judicial stamp paper regarding any risk/loss and legal cost in the matter.

The banks/DFIs will continue to obtain succession certificates from legal heirs of the deceased account-holders or beneficiaries of instrument in all unclaimed deposit refund cases of above Rs100,000.