Press Esc to close
Wednesday 03 September 2014
News updated at 1:59 AM IST
Weather
Max: 27°C
Min : 20°C
In Bangalore
Generally cloudy

'Minors over 10 yrs can operate bank accounts'

New Delhi, pti: May 6, 2014

 Minors above 10 years of age can open and operate independently savings bank account and use other facilities like ATM and cheque books.

The Reserve Bank on Tuesday issued the guidelines allowing minors to operate bank accounts independently with a view to promote financial inclusion and bring uniformity in opening of such accounts in banks.

RBI had earlier permitted minors to open fixed and savings deposit bank account with mothers as guardian.


Modifying the guidelines, the RBI said that all minors can now open a savings/fixed/recurring bank deposit account through either his/her natural guardian or legally appointed guardian. The minors who have attained 10 years of age, would be allowed to open and operate savings bank accounts independently.

“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,” the RBI said.

Further, the banks can also decide on the minimum documents which are required for opening of accounts by minors.

“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,” the RBI said.

On attaining majority, the minor would be required to confirm the balance in his/her account. If the account was operated by the natural/legal guardian, fresh operating instructions and specimen signature of the minor should be obtained and kept on record for all operational purposes, the RBI said.

Go to Top

Photo Gallery
England's Steven Finn survives a run out attempt

England's Steven Finn survives a run out attempt

President Pranab Mukherjee at Mata Vaishno Devi shrine on Tuesday. J & K Governor NN Vohra is...

President Pranab Mukherjee at Mata Vaishno Devi shrine on Tuesday. J & K Governor NN Vohra is...

India's Ravindra Jadeja celebrates after bowling England's Eoin Morgan

India's Ravindra Jadeja celebrates after bowling England's Eoin Morgan

Shuttler PV Sindhu, bronze medalist at World Badminton Championship, speaking to the media with ...

Shuttler PV Sindhu, bronze medalist at World Badminton Championship, speaking to the media with ...

England's Chris Woakes, right, is run out for 10 runs...

England's Chris Woakes, right, is run out for 10 runs...

Indian cricketer Yuvraj Singh, right, watches Jamaican sprinter Usain Bolt bowl during a...

Indian cricketer Yuvraj Singh, right, watches Jamaican sprinter Usain Bolt bowl during a...

Dhoni And Jos Buttler at the fourth one-day international cricket match...

Dhoni And Jos Buttler at the fourth one-day international cricket match...

A devotee carries a statue of the Hindu god Ganesh, the deity of prosperity, to be immersed into...

A devotee carries a statue of the Hindu god Ganesh, the deity of prosperity, to be immersed into...

Ajinkya Rahane celebrates after scoring a century against England during the fourth One Day...

Ajinkya Rahane celebrates after scoring a century against England during the fourth One Day...

Cricketer Yuvraj Singh presents a bat signed by him to Olympic Gold Medalist sprinter Usain...

Cricketer Yuvraj Singh presents a bat signed by him to Olympic Gold Medalist sprinter Usain...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523