10-year-old can sign a bank cheque
Posted on: 07/May/2014 9:59:02 AM
The Reserve Bank of India has now allowed minors above 10 years to open and operate savings bank accounts and recurring bank deposits and save in bank fixed deposits independently, without requiring a guardian, which was the practice till now.Such minor bank account holders will be entitled to most of the facilities, including use of ATM, cheque book and internet banking.
The only thing they will not be allowed is an overdraft facility. Banks will have to ensure that minor accounts always remain in credit.The KYC norms required to follow in banking would not be an issue, as children these days hold PAN cards or Aadhar cards. RBI said banks can decide, in their own discretion, as to what minimum documents will be required for opening of accounts by minors.
The RBI notification on Tuesday said the move is aimed at promoting the objective of financial inclusion and to bring uniformity among banks in opening and operating minors’ accounts.
