(1) Claims of any person other than the actual depositor to deposits made with a licensed institution shall not be entertained. In the event of the death of the depositor, the person willed by him or her, if any, and if such beneficiary also dies or if no person has been willed by the depositor, the surviving person from
amongst his or her relatives, in the following order, shall have first title to such deposits:
(a) Husband or wife living in a joint family;
(b) Son or daughter, or adopted son or adopted daughter, living in a joint family;
(c) Father, mother, grand-son, or grand-daughter from the son’s side living in a joint family;
(d) Husband or wife, son, unmarried daughter, father or mother who is living separately;
(e) Grand-father or grand-mother of the father’s side, brother or unmarried sister, living in a joint family;
(f) Nephew, niece, or step-mother living in an undivided family, or a grand-son or unmarried grand-daughter from the son’s side who is living separately;
(g) Uncle, widowed aunt, sister-in-law (elder or younger brother’s wife), or grand-daughter-in-law living in a joint family;
(h) Brothers living separately;
(i) Married sisters, grand-father, grand-mother, widowed daughter-in-law, grand-daughter-in-law, or nephew who are living separately.
(2) If there is no one in the order of priority referred to in Sub-section (1), the heir shall have the title to such deposit, and if there is not even an heir, the deposit shall accrue to the Government of Nepal.
(3) Notwithstanding anything contained in the laws in force, no amount deposited with a licensed institution shall be handed over to anyone without the approval of the person who has the title thereto under Sub-section (1).