10+ OLD CHILDREN CAN OPERATE BANK ACCOUNTS

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 today 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.