In his position I would have done the same. You can't just push people to their limits like this without consequences.
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What's the standard procedure normally?
edit:
In India, if an account holder dies without naming a nominee, families must provide documents such as a death certificate and proof of legal heirship before funds can be released - a process that can take time, especially in remote villages where access to such paperwork is limited.
if you have a nominee you don't need a proof of death?
Sounds like a similar process to the US. If someone dies, the beneficiary can receive the money, but they need proof they've died. You can't just show up and say someone died and get their money. Usually this is with a death certificate, but in this guy's case it sounds like he didn't have one.
To make it worse, the other family members were also trying to claim the money. I don't think the bank did anything wrong here.