The Bada Reserve Bank of India (RBI) has taken an important decision for children and minors. The rules related to opening of bank accounts and operations have been changed for less than 18 years of age. Amended guidelines have also been released from this. In the new structure, banks also give more flexibility to banks by monitoring guardians and safer operation of children’s accounts. So that children can understand their responsibilities.
The RBI has allowed minors in the age group of 10 years and above to open and operate their accounts themselves. All banks and NBFCs have been instructed to implement the new rule. The central bank has advised all banks to decide the deposit amount and some rules related to withdrawal to reduce the financial crisis. Explain that each bank has been allowed to fix separate rules related to it.
Must know these changes. RBI Rules Updated
- A minor of any age can now open a bank or FD account in its own name. He can operate the account through his natural or legal guardian, including his mother.
- A minor above 10 years of age will be allowed to operate the account itself. However, for this, banks can make some policy, which will have to be given to the minor customer.
- Now minors can also get facilities like debit card, check book and internet banking. However, banks will not allow overdraft. Will ensure that the account is always credited.
- As soon as the account holder is 18 years old, banks will demand new operational instructions and sample signature. If parents are managing the account, then banks will confirm the balance in such a situation.
This advice given to banks?
The circular stated that minors above the age limit of at least ten years and above can be allowed to open and operate and operate a savings/FD account independently on their will. In this, banks can fix the amount and condition keeping their risk management policy in mind. An account holder will be informed about whatever terms and conditions are set in this regard. In addition, when adults, the new operational instructions and sample signatures of the account holder must be obtained and they should be kept in records.
Rules will be changed from July 1
Circular said that banks are free to provide additional facilities to minor account holders based on their risk management policy, products and customers like Internet Banking, ATM/Debit Card, Checkbook Facility etc. Banks must ensure that the accounts of minors, whether they are independently operated or through guardian, do not have more withdrawal from them and there is always zodiac sign. RBI said that in addition, banks will conduct proper checking of the customer to open deposit accounts of minors and will continue it further. The central bank has asked banks to create new policies as per revised guidelines by July 1, 2025 or revise the existing policy.