Now Minors Above 10 Can Open And Operate Bank Accounts Independently, Says RBI

Children above 10 years will no longer require the help of their parents or guardians to open and operate savings bank accounts, as per the new RBI norm. In a notification on Tuesday (May 6), the Reserve Bank of India said that banks will now allow children above 10 years to open and operate savings bank accounts all by themselves. Till date, banks allowed a minor to operate bank accounts only if a parent/guardian was also involved.

Minors can also access additional facilities such as Internet banking, ATM, debit card and chequebook. However, this bonanza comes with a caveat. Banks will not let a minor's account to be overdrawn and these accounts should always remain in credit.

Banks are free to decide the minimum age at which they will allow minors to operate savings bank accounts independently, and also the documents that will be required to open such accounts.

According to the central bank, banks cannot charge customers if they fail to maintain the minimum balance in inoperative savings and current accounts, which have not seen any transaction for two years. This was announced by the RBI in its April 1 monetary police and was implemented on Tuesday.

"Instead of levying penal charges for non-maintenance of minimum balance in ordinary savings bank accounts, banks should limit services available on such accounts to those available to Basic Savings Bank Deposit Accounts and restore the services when the balances improve to the minimum required level," the policy document said.