ChequeMan Blog

Minors over 10 years can operate bank accounts: RBI

RBI has issued guidelines allowing the minors above the age of 10 years to open their bank account independently in view to promote financial inclusion and bring uniformity in opening of such bank accounts.

As per the guidelines, all minors can now open a saving/ fixed/ recurring bank deposit account through either his/ her natural guardians or legally appointed ones.

RBI has also stated that the bank can decide about the limit of the age and the amount upto which the minors would be allowed to operate the accounts independently. Further the bank can also decide on the minimum documents required to open the account.

Banks may or may not offer additional features like Internet Banking, ATM/ Debit card, cheque book facility, etc.

On attaining the majority, the minor is required  to confirm the balance in the account.

If the account was opened by the guardian then on attaining the majority fresh operating account is to be opened along with specimen signature for keeping record for operational purposes.

Importance of writing Account Payee on the cheques

Cheques on which Account Payee is written cannot be en-cashed by any person. It allows the money to be transferred from one account to another directly. This ensures that the money is transferred to the payee’s account only. If a cheque is Account payee, the payee cannot endorse it in favor of any other person.