RBI’s Special Gift To Minors, Allows 10-year-old Above Kids To Independently Open Savings/FD Accounts

New Delhi, April 22 (TNA) The Reserve Bank of India (RBI) has given a special gift to minors above the age of 10 years. On Monday, RBI allowed these minors to open savings/FD accounts independently. According to news reports, the Central Bank has issued revised instructions on opening and operating deposit accounts of minors.

The circular issued to the banks states that minors of any age may be allowed to open and operate savings and fixed deposit accounts through their natural or legal guardian.

According to news reports, the new amendment states that minors may also be allowed to open bank accounts by keeping their mother as guardian. The circular states that minors below the age of 10 years may be allowed to open and operate savings/fixed deposit accounts independently, up to the amount and conditions decided by the banks keeping in view their risk management policy, if they wish to do so, and such conditions will be duly communicated to the account holder.

Also, once the minor attains majority, fresh operating instructions and specimen signatures of the account holder should be obtained and kept on record.