RBI New Rule: RBI permits minors above 10 years to operate bank accounts independently. Details Here

RBI has directed that children aged 10 years and above will be able to open and operate their own savings account and fixed deposit without the help of a guardian. Banks will decide how much money the children can deposit and withdraw…

The Reserve Bank of India (RBI) has given a big and important directive to the banks, due to which now children of 10 years and above will be able to open their savings account and fixed deposit and operate it themselves without the help of their parents or any guardian. Earlier, children needed their parents or a legal guardian to open any such account, but now after the age of 10, they can do this work themselves.

RBI issued a circular to all commercial banks and cooperative banks on Monday and gave this information. It says that a child of any age can open an account through his parents or guardian, but if his age is more than 10 years, then he can do it himself. He can also open an account by making his mother a guardian.

These are the highlights of the new rule

• If the child is 10 years or above, he/she can open and operate his/her own savings and term deposit account.
• Banks can decide how much money children can deposit and withdraw. All this will depend on the risk management policy of the bank.
• When the child turns 18, the bank will again take a fresh signature sample and account operation method from him.
• Banks can decide whether facilities like internet banking, ATM/debit card, cheque book etc should be given to children or not.