RBI/2014-15/225
RPCD.CO.RCB.BC.No.29/07.51.010/2014-15
September
09, 2014
All State Co-operative Banks and Central
Co-operative Bank
Dear Sir/Madam,
Opening
of Bank Accounts in the Names of Minors
Please refer to our circular
RPCD.No.RF.DIR.BC.32/D.1-85 dated January 8, 1985 wherein State / Central
Co-operative Banks (StCBs / DCCBs) 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.
2. Further, with a view to promote the
objective of financial inclusion and also to bring uniformity among banks
in opening and operating minors’ accounts, StCBs / DCCBs 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. StCBs / DCCBs 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 the 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. StCBs / DCCBs are free to offer additional
banking facilities like 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. Udgata)
Principal Chief General Manager
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