RBI allows minors over 10 years to operate bank accounts

As per the guidelines issued by the RBI, minors above 10 years of age have been allowed to open and operate independently savings bank account and use other facilities like ATM and cheque books. The central bank has taken this step with a view to promote financial inclusion and bring uniformity in opening of such accounts in banks. Earlier, minors were allowed to open fixed and savings deposit bank account with mothers as guardian.
As per the modified guidelines by RBI: 

• 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, will be permitted to open and operate savings bank accounts independently.
• The banks can also decide on the minimum documents which are required for opening of accounts by minors.
• The minor would be required to confirm the balance in his/her account as he attains majority.
• If the account is operated by the natural/legal guardian, fresh operating instructions and specimen signature of the minor will be obtained and kept on record for all operational purposes.

Month: Current Affairs - May, 2014