Banks threatening to take my dead Father’s Gratuity/GPF and Mother’s Pension for his loans. Is this legal?

[User_50b79e78]

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User_50b79e78
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April 29, 2026 at 3:41 pm

Hi everyone,

I am 19 years old. My father, a government employee, passed away recently. He had several loans from SBI(7lakh) and other banks(total would be 30 lakhs), but I do not have any of the loan agreements or documents. I have no idea what the terms were or if he signed anything saying the bank could take his retirement money.

I recently got a job on compassionate grounds in his department.

The Banks’ Threats:

1.They told my mother they will stop her Family Pension if the loans aren’t paid.

2.They are saying they will take the money from his GPF, Gratuity, and Leave Encashment.

My Situation:

~I don’t know if my mother was a guarantor (she says she doesn’t remember signing anything).

~I don’t know if the loans were insured.

~I don’t have copies of the contracts my father signed.

~he doesn’t have property or house at his name.

Questions:

1.Can they actually stop a Family Pension or take Gratuity/GPF if I haven’t seen any proof that he authorized it?

2.Can the banks legally touch MY salary? Since I got this job because of my father’s death, can they claim a right to my income to pay off his debts?

3.What is the first legal step I should take to protect my mother’s peace?

I am very lost and don’t want my mother to lose her only source of income. Any guidance is appreciated.

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