Minor Bank Account – I’ve encountered an incident that made me aware of a surprising fact: many parents in India don’t realize that their children, aged 10 and above, can independently open a bank account without any need for assistance from guardians or parents. Find detailed information below about “Minor Bank Account – Complete Details.”
इस पोस्ट में क्या है ?
Minor Bank Account
To enhance financial inclusion, the Reserve Bank of India permitted minors to open a bank account. This notification was issued last year. According to this directive, children aged 10 and above can independently initiate and manage a savings bank account without the involvement of their parents or guardians.
Banks have the discretion to offer additional banking services such as internet banking, ATM/debit card, and cheque book facilities. However, they must ensure that minor accounts do not fall into overdraft and always maintain a positive balance. This move aims to advance financial inclusion objectives and standardize the procedure for opening and operating accounts for minors, providing banks with the authority to allow minors to independently open accounts.
Banking Provisions for Minors
Banks have the authority to set specific parameters regarding age and the amount up to which minors can independently operate deposit accounts, considering their risk management systems. Additionally, each bank holds the discretion to determine the minimum documentation required for opening accounts for minors.
SBI Minor Saving Account: SBI introduces “Pehla Kadam” and “Pehli Udaan,” comprehensive banking products designed to impart the importance of saving money to children and allow them to explore the purchasing potential of money.
Both Savings Accounts come with a range of banking features like Internet Banking, Mobile Banking, etc. These features not only familiarize children with various modern banking channels but also educate them on the fundamentals of personal finance. The accounts include daily limits to encourage prudent spending.
Eligibility
- For minors of any age, the account will be jointly opened with a parent/guardian.
- For minors above 10 years of age capable of consistent signature, the account will be opened solely in the minor’s name. Click Here for more details.
ICICI Saving Account: (Insert ICICI Bank account details here)
Upon Reaching Majority
Upon reaching adulthood, the minor should verify the balance in their account. If the account was operated by the natural or legal guardian, fresh operational instructions and the minor’s updated signature must be obtained and recorded for all future transactions.
Minor Bank Account FAQ
To promote financial inclusion, the Reserve Bank of India permitted minors above 10 years to independently open and operate savings bank accounts without the need for parental or guardian assistance.
Banks have the discretion to offer further services like internet banking, ATM/debit cards, and cheque book facilities to minors. However, certain safeguards ensure that minor accounts remain in credit and cannot be overdrawn.
To encourage financial inclusion and establish consistency among banks, they were authorized to permit minors to independently open and operate accounts, considering their internal risk management systems.
SBI provides “Pehla Kadam” and “Pehli Udaan,” comprehensive banking products aimed at educating children about saving and handling money. These accounts come with various modern banking features and daily spending limits to promote responsible money management.
Upon reaching adulthood, the minor should verify their account balance. If the account was managed by a guardian, fresh operational instructions and the minor’s updated signature should be obtained for future transactions.