Minors above 10 years can now open and operate independently savings bank account and use other facilities like ATM, cheque books and internet banking
The Reserve Bank of India (RBI) on Tuesday issued guidelines allowing minors above 10 years to operate bank accounts independently in order to promote financial inclusion and bring uniformity in opening of such accounts in banks.
Earlier the central bank had permitted minors to open fixed and savings deposit bank account with mothers as guardian.
Modifying its guidelines, the RBI said all minors can now open a savings, fixed and recurring bank deposit account through either his or her natural guardian or legally appointed guardian.
The minors who have attained 10 years of age, would be allowed to open and operate savings bank accounts independently.
"Banks may, however, keeping in view their risk management systems, fix limits in terms of age and amount up to which minors may be allowed to operate the deposit accounts independently," the RBI said.
Further, the banks can also decide on the minimum documents which are required for opening of accounts by minors.
"Banks are free to offer additional banking facilities like Internet banking, ATM/debit card and cheque book facility, subject to the safeguards that minor accounts are not allowed to be overdrawn and that these always remain in credit," the RBI said.
On attaining majority, the minor would be required to confirm the balance in his or her account.
RBI said, if the account was operated by the natural/legal guardian, fresh operating instructions and specimen signature of the minor should be obtained and kept on record for all operational purposes.
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I want a debit card. But I am only 17 years old so how can I get.
I had a student account in it
But they didnt give atm card
BUT, the lawyer takes over. What about bouncing cheques? The minor cannot be prosecuted. Therefore, the cheque-book meeds to mark out that this is minor's account, next to the printed name.
The ATM card is a bit of a worry. The kids will be harassed by the seniors; maybe even kidnapped. If a maximum amount per day is fixed, it may or may not help. Frustrated crooks most often turn violent.
Yet, with safeguards, the habit must be encouraged.
Bapoo M. Malcolm
Possibly fixing an absolute maximum of Rs.5000 at any time can prevent abuses mentioned by you.