Opening of Bank Accounts in the Names of Minors

RBI/2013-14/587  UBD.BPD.(PCB).Cir.No 61/13.01.000/2013-14 May 12, 2014

The Chief Executive Officer  All Primary (Urban) Co-operative Banks

Dear Sir/Madam,

Opening of Bank Accounts in the Names of Minors

Please refer to our circular UBD.(DC) 1148/V.1-84/85 dated February 22, 1985, in

terms of which banks were advised to allow minors’ accounts (fixed and savings

deposit accounts) with mothers as guardians to be opened, subject to safeguards

in allowing operations in such accounts by ensuring that the minors’ accounts

opened with guardian are not allowed to be overdrawn and that these always

remain in credit. Subsequently, Urban Co-operative Banks (UCBs) were advised

to extend the facility of allowing opening of minors’account with mothers as

guardian, to Recurring Deposits.

2. With a view to promoting the objective of financial inclusion and also to bring

uniformity among banks in opening and operating minor s’ accounts, banks are

advised as under:

a. A savings /fixed / recurring bank deposit account can be opened by a minor

of any age through his/her natural or legally appointed guardian.

b. Minors above the age of 10 years may be allowed to open and operate

savings bank accounts independently,  if they so desire. Banks may,

however, keeping in view their risk management systems, fix limits in terms

of age and amount up to which minors may be allowed to operate their

deposit accounts independently. They can also decide, in their own

discretion, as to what minimum documents are required for opening of

accounts by minors.

 c. On attaining majority, the erstwhile minor should confirm the balance in

his/her account and if the account is operated by the natural guardian /

legal guardian, fresh operating instructions and specimen signature of

erstwhile minor should be obtained and kept on record for all operational

purposes.

3. UCBs are free to offer additional banking facilities like internet banking, ATM/

debit card, cheque book facility etc., subject to the safeguards that minor accounts

are not allowed to be overdrawn and that these always remain in credit.

Yours faithfully,

(A.K.Bera) Principal Chief General Manager