In India, a Permanent Account Number (PAN) is required to avail benefits, such as opening a bank account, applying for a passport, or purchasing an insurance policy. Fortunately, the PAN application form includes an option to identify as a third gender since 2018.

However, it was in 2015 that the Reserve Bank of India (RBI) instructed banks to add a 'third gender' option in all forms and applications, enabling transgender individuals to open bank accounts and access related services. Following suit, several banks updated their application forms and started catering to the marginalized community. ESAF Small Finance Bank Ltd launched the 'Rainbow Savings Account' in 2022, specifically for transgenders, offering features like a high-interest savings rate and advanced debit card services.

The recent advisory for the LGBTQ community issued by the ministry comes in light of the Supreme Court's order on October 17, 2023, in the case of Supriyo @ Supriya Chakraborty & Anr. vs Union of India (Writ Petition Civil No. 1011/2022).

"This is to clarify that there are no restrictions for persons of the queer community to open a joint bank account and also to nominate a person in the queer relationship as a nominee to receive the balance in the account in the event of the account holder,” the Finance Ministry stated on Thursday.