The Reserve Bank of India (RBI) has now allowed minor children over 10 years of age to open and run bank accounts in their own name. This information has been given by news agency PTI. This is a very important decision, because earlier the bank account of minor children was operated through their parents or legal parents.
Which children will be able to open accounts?
According to the RBI, children above 10 years will now be able to open and run a savings account (savings account) and term deposit account (fixed deposit account) independently. However, this facility will depend on the bank’s risk management policy.
Banks will also decide to which extent and on what conditions this facility should be provided. The account holder will be informed about whatever terms and conditions will be decided about this.
What will happen after adult?
Banks have to ensure that there is no more withdrawal from the minor’s account and there is always zodiac sign. Before opening the account, it will also be the responsibility of the bank to conduct a proper investigation of the minor.
When the account holder turns 18 years old, it will be mandatory to re -enter the new operating instruction and signature in the bank.
What facilities can children get?
RBI said that banks can also provide facilities like Internet Banking, ATM/Debit Card, Checkbook to minors. But this will be based on the policy of the bank and the understanding of the customer.
The RBI has asked banks to make new policies according to revised guidelines by July 1, 2025 or amend the existing policies.
If the child is younger than 10 years?
If the child is under 10 years of age, he can also open a bank account. However, that account will be opened only through his parents or legal guardian. It has also been clearly stated in the circular of RBI that in such cases the mother will also be recognized as a guardian.
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