RBI Allows Kids To Hold Bank Accounts – 5 Banks Offering Them & How You Can Open One - Details

In a recent development, the Reserve Bank of India ( RBI ) has announced that minors above the age of 10 will be able to open and operate independent bank accounts, a PTI report said.

Minors will now be able to independently open and operate savings banks accounts along with term deposit accounts, as per the report.

"Minors above such an age limit not less than 10 years and up to such amount and such terms as may be fixed by the banks keeping in view their risk management policy, may be allowed to open and operate savings/ term deposit accounts independently, if they so desire, and such terms shall be duly conveyed to the account holder," the central bank said in a statement.

The RBI added that as the minors turn into adults, fresh operating instructions and specimen signature of the account holder will be needed to be kept on record of the bank.

Five Banks Offering Minor Bank Accounts

Here are five banks that are offering minor bank accounts:

State bank of India ( SBI ): the State Bank of India offers savings accounts for minors with features such as zero balance and personalised debit cards.

HDFC Bank: HDFC Bank offers Kids Advantage Account features such as personal debit cards as well as free ATM withdrawals.

Axis Bank: Axis Bank will offer features like personalised debit cards and financial literacy tools through the Future Starts Saving Account.

ICICI Bank: ICICI Bank offers savings accounts for minors with zero balance and personalised debit cards.

Kotak Mahindra Bank: Kotak Mahindra Bank offers zero balance ad personalised debit cards for minors' savings accounts.

How To Open A Minor Bank Account?

To open a bank account for a child, visit a bank branch, fill up the account opening form, provide the necessary documents, and deposit a minimum balance.

Further, if the minor is under the age of 10 years, according to the circular they can open their accounts through their natural or legal guardian with commercial as well as cooperative banks.

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