RBI/2013-14/610
RPCD.CO.RRB.BC.No.104/03.05.33/2013-14

May 27, 2014

The Chairmen,
All Regional Rural Banks

Dear Sir/Madam,

Opening of Bank Accounts in the Names of Minors

Please refer to para 4.10 of our circular RPCD.CO.RRB.BC.No.100/03.05.33/2013-14 dated May 12, 2014 wherein Regional Rural Banks were advised to allow minors’ accounts (fixed, savings and recurring deposit accounts only) 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. With a view to promote the objective of financial inclusion and also to bring uniformity among banks in opening and operating minors’ accounts, Regional Rural Banks are advised as under:

1. A savings /fixed / recurring bank deposit account can be opened by a minor of any age through his/her natural or legally appointed guardian.

2. 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 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.

3. 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. RRBs are free to offer additional banking facilities like ATM/ debit card, cheque book facility, internet banking (as and when permitted) 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