In a significant move toward financial inclusivity, the Union Finance Ministry clarified that queer couples in India could open joint bank accounts without any restrictions. The Ministry’s notification, issued on August 28, comes in response to the Supreme Court’s judgment in the marriage equality case.
The notification by the Department of Financial Services states: “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 a queer relationship as a nominee to receive the balance in the account, in the event of death of the account holder.”
The Supreme Court’s judgment in October 2023 addressed the rights of LGBTQIA+ individuals in India, including their access to certain benefits typically available to married couples. The petitioners argued that LGBTQIA+ persons faced discrimination, including the denial of joint ownership of assets, 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.
While the Supreme Court unanimously ruled that there was no fundamental right to marry and a majority (three of the five judges) held that LGBTQIA+ people did not have the right to form civil unions, it also directed the government to explore ways to ensure the queer community had access to various benefits.
Following the Supreme Court’s judgment, the Centre agreed to form a committee to enhance access to these benefits for queer couples. Chief Justice of India D.Y. Chandrachud, in his written opinion, emphasized the need for experts with knowledge and experience in dealing with the unique social, psychological, and emotional needs of the queer community. He specifically directed the committee to consider enabling queer couples to open joint bank accounts and name their partners as nominees.
In April 2024, the Centre constituted a six-member committee led by the Cabinet Secretary, with secretaries from the Home Department, Ministry of Women and Child Development, Department of Health and Family Welfare, Legislative Department, and Department of Social Justice and Empowerment. The committee’s mandate includes ensuring no discrimination in access to goods, services, and social welfare entitlements for the queer community, preventing threats of violence, harassment, or coercion, and safeguarding mental health and protecting against involuntary medical treatments.
A petition to review the marriage equality judgment is currently pending before the Supreme Court. The case was initially scheduled for a hearing on July 10, 2024, but was delayed after Justice Sanjiv Khanna recused himself. The bench must be reconstituted, further delaying the process. Justice Hima Kohli, another member of the original bench, is set to retire on September 1.
This clarification from the Finance Ministry is seen as a positive step toward recognizing the rights of queer couples in India, particularly in accessing financial services. However, the pending petition for review suggests that the legal landscape concerning the rights of LGBTQIA+ persons remains dynamic, with potential for further changes based on the Supreme Court’s future rulings.
