RBI gives banking rights to its queer citizens. Community awaits on-ground changes

India’s Ministry of Finance has clarified that there are no restrictions on queer individuals opening joint bank accounts with their partners. They can also name their partners as their nominees in the event of the death of the account holder.

In a notice dated August 28, the finance ministry further clarified that in response to the case of Supriyo Chakraborty and others vs. Union of India, there are no restrictions for queer people to avail crucial banking rights.

The finance ministry added that all Scheduled Commercial Banks in the country have been notified of this.

Old Demand, New Relief 

Banking was considered one of the key rights that Indian queers did not have when compared to their fellow cis-gendered, heterosexual citizens. 

Activists had long demanded that banking rights are crucial to ensure financial security and protect the community from the pressures of economic hardships. Other demands include marriage equality, workplace equality, and 'Anti-Discrimination law'. 

What is notable is that queer couples often live outside the boundaries of a typical familial setup. As many are estranged or are away from natal family violence.

In the event of the death of a queer partner, their banking rights till now went to their family, not their partner(s). 

Thus, when the RBI and finance ministry clarified, the community erupted, with many labelling it as a ‘big win.’ 

This author caught up with Yash, the founder of Official Humans of Queer, to know about this development and its real-life impact on the queer rights movement.

How is this a ‘win’ for the community, and will it be implemented in a fair and accessible manner?

“Yes. Basic, but yes. However, whenever a new clarification or policy comes up for our community, the bigger challenge is always implementation. We have seen private banks like Axis promoting similar schemes in 2021 or 2022, but in reality, even their staff were unaware and discriminatory towards people who tried to avail themselves of the policy.”

“Since this clarification is coming from the government in light of the recent update, I hope it gets implemented effectively. I can't comment on how accessible it will be for queer couples, as many times, queer folks are not out and don't want to reveal their identities in such places due to fear.”

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“While this statement might sound very positive and promising, I'm still waiting for the guidelines from the banks, and at a deeper level, I'm concerned about the sensitivity of the staff at these banks who work directly with people. I hope we get to access and use this policy in a respectful and equal manner.”

The notification letter mentions the word ‘queer,’ a far cry from the derogatory and often ‘gay-specific’ language of yesteryears. What do you make of this?

“I love that they are using these inclusive words for the community, but at the same time, they haven't defined 'queer' in this reference. And as far as we know, the policies work in a defined way.” 

“So, when they are talking about 'queer', will they allow people who are in non-monogamous relationships, or people who are not into the idea of romantic relationships but living with their friends as their partners? So, it would have been better if they had defined the same because we all know how they work.” 

It is to be noted that Yash already has his account at HDFC Bank with his partner as a nominee under the ‘others’ section. 

So, all banks already give one access to name anyone as your nominee.  The question is whether the banks will now allow partners to be named as spouses, officially. 

On-ground changes awaited

Banking equality is a win for any society, and this clarification will be a milestone in ensuring equality for all citizens of the country, queer or not. But the real test will be on-ground changes, especially in the semi-urban and rural banks of the country.

The country and the community would be watching very closely.