RBI has allowed children above 10 years of age to open and operate their own bank account. They will be able to keep savings and term deposit accounts, as well as get facilities like ATM, net banking.
The Reserve Bank of India (RBI) has now allowed minor children above 10 years of age to open and operate a bank account 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 guardians.
Which accounts can children open?
According to RBI, children above 10 years of age will now be able to independently open and operate savings accounts and term deposit accounts. However, this facility will depend on the risk management policy of the bank.
Banks will also decide to what extent and on what terms and conditions this facility should be provided. Whatever terms and conditions will be decided in this regard, the account holder will be informed about it.
What will happen after becoming an adult?
Banks will have to ensure that there is no overdraft from the minor’s account and there is always money in it. It will also be the responsibility of the bank to do proper investigation of the minor before opening the account.
When the account holder becomes an adult i.e. 18 years old, it will be mandatory to re-register new operating instructions and signature (specimen 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.
RBI has asked the banks to make new policies or amend the existing policies according to the revised guidelines by July 1, 2025.
If the child is less than 10 years old?
If the child is less than 10 years old, he can also open a bank account. But, that account will be opened only through his parents or legal guardian. In the RBI circular, it is also clearly stated that in such cases, the mother will also be recognised as a guardian.
Most Read Articles:
- EPS Pension Hike: Good news! EPS pension will increase from ₹ 1000 to Rs 7500? know latest update
- Bank Rule Changed: Big news bank customers! Big change in HDFC, ICICI, Axis and Federal Bank, check immediately
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
