Bank operating Age: Now children of this age will be able to operate their own bank account, RBI has given permission
The Reserve Bank said that minors above the age of 10 years are permitted to open and operate savings/term deposit accounts independently.
Bank operating Age: Now children above 10 years of age will be able to operate their bank accounts independently. The Central Reserve Bank has given instructions to the banks in this regard. The Reserve Bank said that minors above 10 years of age are allowed to open and operate savings/fixed deposit accounts independently. Please note that till now only the guardians operate the accounts of minors.
What is in the Reserve Bank’s circular
RBI said in a circular issued to commercial banks and cooperative banks that minors of any age can be allowed to open and operate savings and fixed deposit accounts through their natural or legal guardian. They can also be allowed to open such accounts by keeping their mother as guardian. According to the circular, banks can decide the amount and terms keeping in mind their risk management policy. Whatever terms and conditions are decided in this regard, the account holder will be informed about it.
Banks will be able to provide this facility
The circular said that banks are free to provide additional facilities like internet banking, ATM/debit card, check book facility etc. to minor account holders based on their risk management policy, product and customers. Banks have to ensure that the accounts of minors, whether operated independently or through a guardian, are not overdrawn and always have funds. RBI said that apart from this, banks will do proper investigation of the customer to open deposit accounts of minors and will continue to do so. RBI has asked banks to make new policies or amend existing policies in line with the revised guidelines by July 1, 2025.
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