In a significant move aimed at promoting financial inclusion, the Reserve Bank of India (RBI) has announced that minors aged 10 years and above can now independently open and operate savings bank accounts. This initiative is designed to encourage early financial literacy among children and bring uniformity in the opening of such accounts across banks.The Times of India+5Firstpost+5BizFinance News+5mint+3BizFinance News+3Firstpost+3
According to the RBI’s guidelines, banks are permitted to offer additional facilities to these minor-operated accounts, including internet banking, ATM/debit cards, and cheque books. However, these accounts must always remain in credit and are not allowed to be overdrawn. Banks have the discretion to set limits on the age and amount up to which minors may operate their accounts independently, as well as decide on the necessary documentation required for opening such accounts.The Times of India+5Firstpost+5BizFinance News+5The Times of India+5The Economic Times+5mint+5The Economic Times+3The Times of India+3BizFinance News+3
Upon reaching the age of majority, the account holder is required to confirm the balance in their account. If the account was previously operated by a guardian, fresh operating instructions and specimen signatures of the now-adult account holder should be obtained for all operational purposes.BizFinance News+3The Indian Express+3The Economic Times+3BizFinance News+4Firstpost+4The Indian Express+4
Source (full link):
https://www.ndtv.com/india-news/rbi-allows-minors-over-10-years-to-open-bank-accounts-independently-8223679
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