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Queer couples can open joint bank accounts without any restrictions, the Union Finance Ministry has clarified via a notification on August 28 following the Supreme Court’s judgment in the marriage equality case.
“In connection with the Hon’ble Supreme Court of India’s judgment dated 17.10.2023 in the case of Supriyo @ Supriya Chakraborty and another Vs Union of India… this is to clarify that there are no restrictions for persons from the Queer community to open a joint bank account and also to nominate a person in queer relationship as a nominee to receive the balance in the account, in the event of death of the account holder,” the advisory by the Department of Financial Services reads.
The petitioners in the marriage equality case had argued that LGBTQIA+ persons faced discrimination as they were denied benefits that are available to more ‘traditional’ married couples. Along with having joint ownership of assets, this included access to succession rights, rights to maintenance and alimony, financial benefits under the Income tax Act, 1961, and the ability to make medical decisions for terminally ill partners as members of their family.
In October 2023, the Supreme Court unanimously held that there was no fundamental right to marry and a majority (3 of the 5 Judges) held that LGBTQIA+ people did not have the right to form civil unions. However, the Centre during the hearing agreed to form a committee to increase the access of queer couples to benefits that were previously only available to married couples.
Chief Justice of India D Y Chandrachud, in his written opinion, directed that the committee must include “experts with domain knowledge and experience in dealing with the social, psychological, and emotional needs of persons belonging to the queer community as well as members of the queer community”. He also specifically directed the committee to consider “Enabling partners in a queer relationship… to have the facility of a joint bank account with the option to name the partner as a nominee, in case of death”.
In April 2024 the Centre constituted a six-member committee following the court’s decision. The committee is being led by the Cabinet Secretary and includes secretaries from the Home Department, the Ministry of Women and Child Development, the Department of Health and Family Welfare, the Legislative Department and the Department of Social Justice and Empowerment.
The Centre’s notification on the committee’s creation describes its mandate. It has been charged with examining and submitting recommendations for measures to ensure there is no discrimination in access to goods, services and social welfare entitlements for the queer community, that members of the queer community do not face any threats of violence, harrassment or coercion, that their mental health is take care of and they are not subjected to involuntary medical treatments.
A petition to review the marriage equality judgment is currently pending at the Supreme Court. The case was initially set to be heard on July 10, 2024. However, On July 10 the apex court delivered an order communicating Justice Sanjiv Khanna’s recusal from hearing the case. This resulted in a delay as a new bench will now have to be constituted. Justice Hima Kohli, who was also a part of the bench, is set to retire on September 1.
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