The RBI amended guide allows minors to open bank accounts with net banking available, but under these conditions, please check for more details
The Reserve Bank of India has introduced the new guidelines, which will now be able to open its bank accounts, including many other facilities such as time deposit accounts, ATM cards and more. Apex Bank allows banks to freely provide more facilities such as issuing checkbooks, debit cards, etc., to secondary account holders. However, banks must comply with risk management policies, product suitability and customer suitability, read the new notice from the Reserve Bank of India.
The RBI amended guide allows minors to open bank accounts with net banking available, but under these conditions, please check for more details
The Reserve Bank of India has introduced the new guidelines, which will now be able to open its bank accounts, including many other facilities such as time deposit accounts, ATM cards and more. Apex Bank allows banks to freely provide more facilities such as issuing checkbooks, debit cards, etc., to secondary account holders. However, banks must comply with risk management policies, product suitability and customer suitability, read the new notice from the Reserve Bank of India.
The Reserve Bank of India has issued guidelines to banks in the past to open operations and operations in deposit accounts for minors. Existing guidelines were reviewed with the aim of rationalizing and coordinating existing guidelines.
Under the new guidelines, minors can open and operate savings and time deposit accounts with their parents or legal guardians. In this case, the mother can also become a guardian. However, only minors over the age of 10 can open and operate savings/time deposit accounts independently and these terms must be communicated to the account holder.
When these minors are over 18 years of age, their signature must be recorded and recorded, but the account is operated by the guardian and the balance should be confirmed. Banks should take action in advance, including communicating these requirements to minor account holders who are at majority age to ensure that these requirements are met.
The RBI also provides free hands to banks, providing other banking facilities to secondary account holders such as internet banking, ATM/debit cards, checkbooks, etc. Banks should ensure that the accounts of minors are not allowed, whether operated independently or through guardians, and that credit balances are maintained at all times.
Banks shall, in accordance with the opening of minors’ accounts, on February 25, 2016, dated February 25, 2016, dated February 25, 2016, as amended from time to time, conduct ongoing due diligence in accordance with the Master Direction (KYC) guidance and in accordance with the General Guidance (KYC) direction of the Master Direction (KYC) direction. The above guidelines are issued in accordance with Articles 35A and 56 of the Banking Regulation Act of 1949. Banks are advised to develop new and/or amend existing policies to align them with these guidelines, latest by July 1, 2025. At the same time, existing policies may continue.
