Bank Account for 10 years kids: Now a 10 -year -old child can run his own bank account himself. If there is a child in your house whose age is 10 years or older, then now he will be able to run his bank account himself. Yes, the Reserve Bank of India (RBI) has taken a new decision that now the children themselves will be entitled to open and run SAVINGS Account and Fixed Deposit. These rules are a good opportunity to teach children with money and responsibility of money quickly. Now children will be able to become financially smart from a young age.
Children can open accounts at any age
A bank account can be opened at any age in the name of children, but then the account will run through a mother or a legal guardian. RBI has also made it clear that the mother can also become a child’s guardian.
Freedom to run an account itself after 10 years
A child who is 10 years or older, can now run an account himself. However, every bank will keep some conditions according to its policy and safety, such as how much money can be withdrawn, which facilities will be available, etc. The bank will have to tell these things to the child in advance.
The account will be updated after 18 years
When the child turns 18, the bank will have to take documents and signature again. If the account was running before the account, then the bank will also have to confirm the money.
ATM card and internet banking facility
Banks can also provide facilities like ATM card, internet banking and checkbook to children if they want, but it will depend on their policy.
Overdraft will not be allowed
Overdraft will never run in the child’s account. Meaning, the more money it is, the more it can be used, not more than that.
While opening the account and further, the bank will have to take KYC documents associated with the child’s identity and address.
Rules will be applicable from 1 July 2025
RBI has asked all banks to make changes in their rules and apply it by 1 July 2025. This includes all government banks, private banks, co-operative banks.
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