Country’s largest lender State Bank of India (SBI) planning to start special scheme for children’s account following the Reserve Bank of India (RBI)’s notification that allows minors of above 10 years of age to open and operate accounts independently.
At present the bank open accounts in the name of children/minor with their guardians. These accounts have restriction on overdraft but there is no restriction on deposit though. “And we are going to launch a special scheme for children in the next three months,” SBI Chairperson Arundhati Bhattacharya told reporters.
The RBI on May 6, 2014 issued guidelines allowing minors over 10 years to operate bank savings accounts independently and use facilities such as ATMs and cheque books.
The central bank said the move was aimed at promoting financial inclusion and bringing uniformity in opening of such accounts in banks. Minors were previously allowed to open fixed and savings deposit accounts with mothers as guardians.