Banking facility for minors

GN Bureau | May 7, 2014



To boost financial inclusion, the Reserve Bank of India (RBI) has allowed minors over ten years of age to independently open their savings bank accounts and run it without tagging themselves in joint accounts with a parent or guardian.

However, the RBI has given banks the liberty to give this facility and also fix the minimum age at which minors can can have savings bank accounts independently.

Under the new RBI guideline, the minors are to be given facilities like ATMs, internet banking, debit card and chequebooks. Such accounts, however, shall never be overdrawn, the RBI has said. Besides, the additional banking facilities shall conform to the banking norms.

Meanwhile, according to separate RBI circular, banks have been asked to stop the practice of levying penal charges on inoperative banks – savings and current accounts that have had no transaction for two years or more. Such charges lead to negative balance and customers are asked to pay up when they go to close their accounts.

Instead, the RBI has asked the banks to cut down on services available to the account holder till the time the minimum account balance is restored.

Comments

 

Other News

Demonetisation posed a new challenge to growth: IMF

The Indian economy has recorded strong growth in recent years, helped by a large terms of trade gain, positive policy actions including implementation of key structural reforms, a return to normal monsoon rainfall, and reduced external vulnerabilities, said the International Monetary  Fund (IMF).

The Nirbhaya of Naliya: a gang-rape in Gujarat involving BJP leaders

  The “Forum of Concerned Citizens for Naliya Incident” sent a fact-finding team to Kutch on February 20. The members of the team were Dineshbhai Sanghvi, Meenakshi Joshi, Balendra Vaghela, Dr Jharna Pathak and advocate Shabana Mansuri. Based on their report, the Forum ha

A blotch of saffron on Indian universities

University of Hyderabad, Jawaharlal Nehru University and now University of Delhi…the free space for discourse is steadily being squeezed out of universities in India as the Rashtriya Swayamsevak Sangh (RSS) backed Akhil Bharatiya Vidyarthi Parishad (ABVP) imposes its will and forcibly blocks out alt

The last fake encounter killing in Doon Valley

July 3, 2009 was a hot day. At around 5.30 in the evening, Ravinder Pal Singh was busy selling milk and milk products at his Mother Dairy booth in Indirapuram, Ghaziabad, when his phone rang. His younger brother Narinder Singh was on the line. When their conversation ended, Ravinder was ash-faced; his coun

Should a court-monitered probe be carried out in the charges levelled by Kalikho Pul in his suicide note?

Should a court-monitered probe be carried out in the charges levelled by Kalikho Pul in his suicide note?

I believe we are at crossroads, says deputy governor RBI

  Only a bank that fears losing its deposit base or incurring the wrath of its shareholders is likely to recognise losses in a timely manner. In many of our banks, such market discipline is simply not present at the moment, said RBI deputy governor Viral V Acharya.  

Video

Digital Transformation Summit

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter