Reserve Bank of India: The Reserve Bank of India (RBI) has issued new guidelines regarding children’s bank accounts, which will now help children to get into the habit of savings and financial planning from a young age. According to these new rules, now any minor (child of any age) can open savings or term deposit account with the help of his parents or legal guards. The special thing is that the mother has also been recognized as a guardian, as RBI had earlier cleaned in an old circular of 1976.
What are the new guidelines
If a child is 10 years or older, he can open the savings or term deposit account himself at his own will and operate it. But for this, banks will set some conditions and limits under their risk management policy, which will be clearly necessary to explain the child.
As soon as the child becomes 18 years old, the bank will have to take a new operating instruction and signature from it. If the account was earlier running his parents or guardians, the bank will also confirm the balance. For this, banks will already provide related information to children and their parents, so that this process can be easily completed.
Children will get these facilities
Apart from this, banks can also provide facilities like internet banking, ATM/debit card and check book to children, provided they are in accordance with the policy, product suitability and customer profile. However, it has also been clarified that children will not have overdraft facilities in their account.