Minors Bank Account above 10 Years: Changes and Restrictions

Context: The Reserve Bank of India (RBI) has recently amended rules related to banking facilities available for Minors.

Changes made by the RBI for Minors Bank Account

Minors aged 10 years or above can now

• Open and operate savings and term deposit accounts independently (without needing a guardian).
• Use additional banking services (if permitted by the bank).

Some facilities will be at the Bank’s Discretion

Banks can decide:

• The amount limits on transactions.
• The terms and conditions, based on their risk management policies.
• Whether to provide extra facilities like:
  • Internet banking
  • ATM/debit cards
  • Cheque book
• Minors below 10 Years can Still Open Accounts, but only through a natural or legal guardian.

Restrictions on Minor Bank Accounts (All Ages)

No Overdraft Allowed

• These accounts must always have a credit balance.
• Cannot go into a negative balance under any circumstances.

Due Diligence Required

• Banks must:
  • Conduct proper background verification when opening minor accounts.
  • Regularly monitor the accounts for any unusual activity (ongoing due diligence).

Sharing is caring!