You may have to abide by the law in this regard.

If the bank is refusing to accept an indemnity bond to indemnify the loss, duly signed by all the legal heirs of your deceased mother and also on production of the legal heir ship certificate from the Tahsildar, you have no option than to approach a court competent to obtain a succession  certificate. Generally, the bank, if convinced, may accept the indemnity bond and may settle the amount in favor of all the legal heirs jointly or to anyone who has been authorised by you all to receive the same on behalf of all you legal heirs to your deceased mother. 

Hence you may convince the bank manager about your urgent financial need and also the indemnity bond route to settle the claim amount.

Nominee is only trustee for legal heirs 

you need to apply for and obtain succession certificate from district court in name of legal heirs 

Generally, the bank should settle the death claim in favour of the nominee, irrespective of whether the savings account is linked to a demat account or not, without insisting on a succession certificate. However, when the value of the securities in the demat account exceeds a specified amount, banks call for a succession certificate to transfer the securities to the nominee. In your case, the value of securities in the demat account may have exceeded that limit. Please ascertain from the bank concerned to confirm this fact. In any case, the bank has to settle the savings account without any demur. 

A succession suit should be filed in the district court and the court will issue a succession certificate. All the legal heirs must be mentioned and notices will be issued by the court. It may take 2 months.

Dear Sir, 

1. you will need to get a succession certificate made.

2. following are the steps to procure a succession certificate:

Step 1: Preparation of Petition

The applicant will prepare a petition, verify and sign the same and submit it to the district judge in the appropriate jurisdiction after paying the appropriate court fees.

Step 2: Submission to Court

The district judge will give an opportunity for the preliminary hearing of the petition filed by the applicant/petitioner and if the petition is admitted, he shall fix a day for the final hearing in respect of the same and also send notice of the hearing to whomsoever he thinks fit.

Step 3: Grant of Certificate

After hearing all the concerned parties, the judge will decide if the applicant is within his right to apply for the succession certificate and shall grant the succession certificate to him if satisfied.

Step 4: Submission of Bond

The district judge may also require the applicant to provide a bond with one or more sureties or any other security so as to make good any possible loss arising out of the use or misuse of such certificate.

Note: The district judge may also grant an extension in respect of any debt or security that was not included in the earlier application.

Thank You!

Banks need succession certificate if there is no will or nomination done for the said funds. You need to submit succession certificate or noc from all legal heris for the same

- As per law, after the death of your mother intestate , her property , amount in the bank account etc. can be claimed by her legal heirs equally including your father if alive. 

- However the bank can issue the amount to the nominee ,but legally nominee is only a trustee , and the amount can be claimed by all legal heirs.

- The bank is right to ask for succession certificate or legal heir certificate . 

- Further if there is already your name is nominated , then bank is under obligation to refund the amount of the account to you as per RBI circular. 

- You can lodge a compliant before the RBI against the said bank.