Reserve Bank of India (RBI) on 6 May 2014 issued the guidelines to allow the minors of age above 10 years to independently open and operate savings bank accounts and use other facilities like ATM and cheque books.
Till now, banks allowed minors to operate bank accounts only along with a parent or a guardian. All children and teenagers below the age of 18 are considered minors under current rules.
RBI took this initiative to promote the objective of financial inclusion and also to bring uniformity among banks in opening and operating minors’ accounts.
Highlights of the guidelines:
• All minors can now open a savings/fixed/recurring bank deposit account through either his/her natural guardian or legally appointed guardian.
• Banks may 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 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, cheque book facility, etc, subject to the safeguards that minor accounts are not allowed to be overdrawn and that these always remain in credit.
• On attaining majority, the minor would be required to confirm the balance in his/her account.
• 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.