Posted by: Girija Gadre on May 28, 2018, 06.30 AM IST
Children’s bank accounts help parents create a corpus for their children and teach them basics of money management.
Such accounts are called “minor” accounts. A minor is a person who has not attained 18 years of age.
Who can open? i. A natural guardian on behalf of the minor. ii. A natural guardian, jointly with the minor. iii. A legal guardian in the name of the minor. iv) A minor of age 10 and above in his/her name to be operated by the minor.
Form The usual account opening form can be filled up to open a minor account. Details like the minor’s name, address, guardian details and signature must be furnished.
Documents Following documents need to be furnished: • Proof of minor’s date of birth • KYC documents of the guardian. Aadhaar card of the minor. • Specimen signature of guardian. Minor’s specimen signature in case he/she is 10 years old.
Operation of account For accounts of minors below 10 years of age, the guardian must operate the account. However, minors over 10 years of age can operate the account on their own.
Upon turning 18 years Once the minor turns 18, the account has to be designated as a regular savings account. Thereafter, the guardian cannot operate the account on the account holder’s behalf. An application form along with KYC of minor turned major needs to be furnished.
Points to note Banks prescribe daily transaction limits and allow parents to have additional transaction limits on accounts of minors to enable them to keep a check on the transactions of their children