RBI Issues Guidelines for Opening of Bank Accounts of Children

With a view to promote the objective of financial inclusion and also to bring uniformity among banks in opening and operating minors’ accounts, Reserve Bank of India (RBI) issued guidelines dated May 6, 2014 to all Scheduled Commercial Banks on Opening of Bank Accounts in the Names of Minors which, prescribes that Minors above the age of 10 years may be allowed to open and operate savings bank accounts independently, if they so desire. 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. Banks can also decide, in their own discretion, as to what minimum documents are required for opening of accounts by minors. On attaining majority, the erstwhile minor should confirm the balance in his/her account and if the account is operated by the natural guardian/legal guardian, fresh operating instructions and specimen signature of erstwhile minor should be obtained and kept on record for all operational purposes.

This information was given by the Minister of State for Finance, Smt. Nirmala Sitharaman in written reply to a question in Lok Sabha today.

Source : PIB Release, 1st August, 2014