LGBTQIA+ couples can open joint bank accounts: Centre

• People from the LGBTQIA+ community and those in queer relationships cannot be prevented from opening joint bank accounts.

Highlights:

• In a significant move towards ensuring financial equality, the Union government has issued an advisory allowing individuals from the LGBTQIA+ community and those in queer relationships to open joint bank accounts and nominate each other as beneficiaries.
• This development aligns with the Supreme Court's 2023 judgement, which, while not recognizing same-sex marriage, urged the government to consider equal entitlements for partners in queer relationships.

Key Highlights:

1. Government Advisory:

• The advisory, issued on August 28 by the Department of Financial Services, clarifies that there are no restrictions preventing individuals in queer relationships from opening joint bank accounts or nominating each other as beneficiaries in case of death.
• This clarification was also supported by the Reserve Bank of India (RBI), which issued a directive to all Scheduled Commercial Banks on August 21.

2. Supreme Court’s Influence:

• The advisory follows the Supreme Court's October 2023 judgement, which called on the Union government to consider providing equal financial rights to queer couples.
• Although the court did not legalize same-sex marriage, it recognized the need for financial and social entitlements for those in queer relationships, including the ability to open joint bank accounts.

3. Private Banks’ Initiatives:

• Even before the Supreme Court's judgement, some private banks had begun offering inclusive banking services to the LGBTQIA+ community. For example, Axis Bank has allowed individuals in same-sex relationships to nominate each other as beneficiaries and open joint bank accounts since September 2021.

4. Government Panel on Queer Entitlements:

• In response to the Supreme Court's directive, the government established a six-member committee in April 2024 to define the scope of entitlements for queer couples.
• Chaired by the Cabinet Secretary, the committee includes Secretaries from various ministries such as Home Affairs, Social Justice and Empowerment, Law and Justice, Women and Child Development, and Health and Family Development.
• The panel has been tasked with exploring the rights and entitlements of queer couples, including financial aspects.
• The committee held its first meeting on May 21, followed by a sub-committee meeting on May 31, and a stakeholder consultation on July 25. These discussions aim to ensure that queer couples receive equitable treatment under the law.
• Implications: This advisory marks a significant step towards financial inclusivity for the LGBTQIA+ community in India.
• By enabling queer couples to open joint bank accounts and nominate each other as beneficiaries, the government is addressing long-standing inequalities and paving the way for greater financial security for all citizens, regardless of their sexual orientation or relationship status.

Prelims Takeaways:

• RBI
• Section 377