Bank accounts have been opened for children...RBI has issued new guidelines, read the full report here

The Reserve Bank of India (RBI) has issued new guidelines regarding children's bank accounts, which will now help children to get into the habit of saving and financial planning from an early age. According to these new rules, now any minor (child of any age) can open a savings or term deposit account with the help of his parents or legal guardian. The special thing is that the mother has also been recognized as a guardian, as RBI had earlier clarified in an old circular of 1976.

What are the new guidelines

If a child is 10 years or older, then he can open and operate a savings or term deposit account on his own. But for this, the bank will set some conditions and limits under its risk management policy, which will also have to be clearly explained to the child.

As soon as the child turns 18 years old, i.e. an adult, the bank will have to take a new operating instruction and signature from him. If the account was previously being operated by his parents or guardian, then the bank will also verify the balance. For this, the bank will already provide the relevant information to the children and their guardians, so that this process can be completed easily.

Children will get these facilities

Apart from this, if the bank wants, it can also provide facilities like internet banking, ATM/debit card and checkbooks to the children, provided it is in accordance with the bank's policy, suitability of the product, and the customer's profile. However, it has also been clarified that there will be no overdraft facility in the children's account and it is mandatory to always have a positive balance in the account.