Minors above 10 yrs now allowed to open, operate SB accounts independently
Updated: May 07, 2014 01:10:10pm
Mumbai, May 7 (KNN) Minors above 10 years of age will now be allowed to open and operate independently savings bank accounts, and the banks are free to offer additional banking facilities like internet banking, ATM/ debit card, cheque book facility etc, said RBI.
“…with a view to promote the objective of financial inclusion and also to bring uniformity among banks in opening and operating minors’ accounts, banks are advised as under a savings /fixed / recurring bank deposit account can be opened by a minor of any age through his/her natural or legally appointed guardian,” RBI said in a notification.
Minors above the age of 10 years may be allowed to open and operate savings bank accounts independently, if they so desire. Banks may, however, 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.
“They can also decide, in their own discretion, as to what minimum documents are required for opening of accounts by minors,” said RBI.
RBI notification further said that on attaining majority, the erstwhile minor should confirm the balance in his/her account and if the account is operated by the natural guardian / legal guardian, fresh operating instructions and specimen signature of erstwhile minor should be obtained and kept on record for all operational purposes.
“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,” it added. (KNN/SD)
“…with a view to promote the objective of financial inclusion and also to bring uniformity among banks in opening and operating minors’ accounts, banks are advised as under a savings /fixed / recurring bank deposit account can be opened by a minor of any age through his/her natural or legally appointed guardian,” RBI said in a notification.
Minors above the age of 10 years may be allowed to open and operate savings bank accounts independently, if they so desire. Banks may, however, 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.
“They can also decide, in their own discretion, as to what minimum documents are required for opening of accounts by minors,” said RBI.
RBI notification further said that on attaining majority, the erstwhile minor should confirm the balance in his/her account and if the account is operated by the natural guardian / legal guardian, fresh operating instructions and specimen signature of erstwhile minor should be obtained and kept on record for all operational purposes.
“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,” it added. (KNN/SD)
Loading...
