State Bank of India (SBI) and Industrial Credit and Investment Corporation of India (ICICI) on 24 September 2014 allowed kids to operate bank accounts independently.
The bank account is available for all kids above 10 who can sign uniformly. A uniform signature is a prerequisite since the banks are not making any allowance in signature variation for children and cheques can be returned where signatures do not match.
On 5 September 2014, SBI had launched new accounts Pehla Kadam and Pehli Udaan for kids.
Now, ICICI Bank has launched Smart Stars account and Federal Bank Limited has Young Champ Account for minors.
Further, ICICI Bank has imposed a debit transaction limit of 50000 rupees annually for minor-operated accounts. If the account is operated with a guardian's consent, the annual limit is enhanced to 2 lakh rupees.
The banks are offering full-fledged services to minors, including photo debit cards and access to mobile and net banking.
These minor-operated accounts were allowed by the Reserve Bank of India in May 2014 to inculcate savings behaviour among the young.
The only condition was that minors should not be given any overdraft or credit facility.
When: 24 September 2014