Next time you enter a bank , don’t be surprised if you see a 10-year-old operating her savings bank account or swiping a debit card at the ATM next-door .

In a bold move, the Reserve Bank of India, through a notification to banks, has said minors above the age of 10 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 amounts up to which minors may be allowed to operate the deposit accounts independently, the central bank said.

They can also decide, at their own discretion, as to what minimum documents are required for opening of accounts by minors.

Additional facilities Banks are free to offer additional banking facilities, such as internet banking, ATM/ debit card, cheque book facility, etc, subject to the safeguards that minor accounts are not allowed to be overdrawn and that these always remain in credit.

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.

Further, fresh operating instructions and specimen signature of the erstwhile minor should be obtained and kept on record for all operational purposes, the RBI has said.

The RBI said the move is aimed at promoting the objective of financial inclusion.

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