RBI: Ahead of month end, RBI makes a big announcement. Now even 10 year old children can run their own bank accounts. If you have a child in your house whose age is 10 years or more, then now he can run his bank account himself. Yes, the Reserve Bank of India (RBI) has taken a new decision that now children will be entitled to open and run savings account and fixed deposit account themselves.
These rules are a good opportunity to teach children the understanding of money and responsibility quickly. Now children will be able to become financially smart from a young age. Bank accounts can be opened in the name of children at any age, but then the account will be operated through the mother or a legal guardian. RBI has also clarified that the mother can also become the guardian of the child.
A child who is 10 years or older can now manage the account on his own. However, every bank will keep some conditions according to its policy and security, such as how much money can be withdrawn, what facilities will be available, etc. The bank will have to tell these things to the child in advance.
Account will be updated after 18 years
When the child turns 18, the bank will have to take documents and signatures again. If the account was previously operated by the parents, the bank will also have to confirm the account of the money.
ATM card and internet banking facility
If banks want, they can also provide facilities like ATM card, internet banking and cheque book to children, but this will depend on their policy.
Overdraft will not be allowed
There will never be an overdraft in the child’s account. This means that only the amount of money that is available can be used, not more than that.
KYC is mandatory
At the time of opening the account and in future also, the bank will have to take KYC documents related to the identity and address of the child. RBI has asked all the banks to change their rules and implement it by July 1, 2025. This includes government banks, private banks, co-operative banks.