Now, children above 10 years can operate own bank account, ATM card
Moneylife Digital Team 07 May 2014

Minors above 10 years can now open and operate independently savings bank account and use other facilities like ATM, cheque books and internet banking

The Reserve Bank of India (RBI) on Tuesday issued guidelines allowing minors above 10 years to operate bank accounts independently in order to promote financial inclusion and bring uniformity in opening of such accounts in banks.

 

Earlier the central bank had permitted minors to open fixed and savings deposit bank account with mothers as guardian.

 

Modifying its guidelines, the RBI said all minors can now open a savings, fixed and recurring bank deposit account through either his or her natural guardian or legally appointed guardian.

 

The minors who have attained 10 years of age, would be allowed to open and operate savings bank accounts independently.

 

"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," the RBI said.

 

Further, the banks can also decide on the minimum documents which are required for opening of accounts by minors.

 

"Banks are free to offer additional banking facilities like Internet banking, ATM/debit card and cheque book facility, subject to the safeguards that minor accounts are not allowed to be overdrawn and that these always remain in credit," the RBI said.

 

On attaining majority, the minor would be required to confirm the balance in his or her account.

 

RBI said, if the account was operated by the natural/legal guardian, fresh operating instructions and specimen signature of the minor should be obtained and kept on record for all operational purposes.

Comments
lalitamina03092004
6 months ago
Hey team ,
I want a debit card. But I am only 17 years old so how can I get.
trilochanas998
12 months ago
I am 17 yrs old i went to BOI bank for money withdrawal by cheque of mine money about 11o0 but the refused me to give money and said i am minor i cant withdrawal that much money and also said who give you cheque book. In pervious six months i continuesly withdrawal money by cheque that time noone said me this so why they refuse me this time they said first apply for atm card then grt your money
sucheta
Replied to trilochanas998 comment 12 months ago
Please write to Moneylife Foundation's legal helpline with clear and specific details including when you opened the account, which branch and city, was the account opened as a minor, has a cheque book been issued in your name? Also an ATM card is automatic these days and is issued even BEFORE a cheque book. So, if your facts are correct (we need to verify), there is a lot wrong with how the bank has dealt with you. Also you can yourself go to the bank website and look up the rules and check if you have complied with them during account opening. Here is a link to the Moneylife Foundation, go to the helpline tab at the top right. All this is FREE: https://www.mlfoundation.in/
trilochanas998
12 months ago
I am 17 yrs old i went to BOI bank for money withdrawal by cheque of mine money about 1100 but the refused me to give money and said i am minor i cant withdrawal that much money and also said who give you cheque book. In pervious six months i continuesly withdrawal money by cheque that time noone said me this so why they refuse me this time they said first apply for atm card then grt your money
shahnshahnawazsharifshahnawaz
1 year ago
can i open a bank account my age is 12 years
trilochanas998
Replied to shahnshahnawazsharifshahnawaz comment 12 months ago
Who are you
mr5382194
1 year ago
Please atm open
khrawpyrkhatnongbet833
1 year ago
Can i open bank account and my age is 17 year old
pandeyabhay517
2 years ago
Can I open the bank with online my age is 14 year old
Emma Stone
3 years ago
I am 17 yrs old i went to sbi bank for money withdrawal by cheque of mine money about 10,000 but the refused me to give money and said i am minor i cant withdrawal that much money and also said who give you cheque book. In pervious six months i continuesly withdrawal money by cheque that time noone said me this so why they refuse me this time they said first apply for atm card then grt your money
Nenavath Swami
4 years ago
I want to apply ATM in andra bank
NOTTY NITHIN
Replied to Nenavath Swami comment 4 years ago
It is a worst bank
I had a student account in it
But they didnt give atm card
Bapoo Malcolm
8 years ago
Could not be better for ensuring the savings habit.

BUT, the lawyer takes over. What about bouncing cheques? The minor cannot be prosecuted. Therefore, the cheque-book meeds to mark out that this is minor's account, next to the printed name.

The ATM card is a bit of a worry. The kids will be harassed by the seniors; maybe even kidnapped. If a maximum amount per day is fixed, it may or may not help. Frustrated crooks most often turn violent.

Yet, with safeguards, the habit must be encouraged.

Bapoo M. Malcolm
Nagesh Kini
Replied to Bapoo Malcolm comment 8 years ago
Bapoo - RBI has left it to the banks to fine tune. Do hope all the Banks and IBA will address your concerns that are absolutely valid and proper safeguards need to put in place before it is launched.
Possibly fixing an absolute maximum of Rs.5000 at any time can prevent abuses mentioned by you.
Nagesh Kini
8 years ago
Taking financial literacy to the class room at an early age!
Free Helpline
Legal Credit
Feedback