The Reserve Bank of India (RBI) has taken an important step for children, which will give children a new direction in financial responsibility and basic knowledge of banking. Now children aged 10 years and above can open and operate their bank account even without a guardian. Earlier children used to collect money only in piggy banks, but now they will be familiar with financial terms like bank account, savings account and fixed deposit. This decision will further strengthen the entry of children into the banking world, which will give them an understanding of managing and spending money from a young age.
So, let’s understand how children will benefit with the new development…
At what age will children be able to open a bank account themselves? What arrangements will the banks make regarding children’s accounts?
Answer- Earlier, an adult was needed to open a bank account for children, but RBI has now allowed children aged 10 years or above to open their own bank account without the help of parents or guardian. For this, every bank will open an account for children according to its rules and all transactions will be monitored, so that fraud can be avoided.
When will this new rule of RBI come into effect and what will the banks have to do for this?
Answer- This new rule of RBI will come into effect from July 1, 2025. Meanwhile, banks will have to change their policy i.e. rules and regulations and decide how the children’s account will be opened, how it will run and how it will be kept safe.
Why did RBI take this decision for children?
Answer- Financial expert Jitendra Solanki says that with the new decision, children will now be able to learn the understanding of money and banking from a young age. When children run their own account, they will learn to save, manage money and spend wisely. This will increase financial literacy in children i.e. understanding related to money. They will know how money is earned, saved and used. This will enable them to take good and responsible decisions in the future. This change is not just to connect children to the bank, but is a big step towards making them self-reliant and responsible citizens.
Question- Will accounts be opened for children below 10 years of age?
Answer- Yes, bank accounts can also be opened for children below 10 years of age, but that account will be run by their parents or guardian. That is, the child himself will not operate that account. RBI has clearly said that overdraft will not be allowed in the accounts of such children.
Question- Will the bank have to do anything else?
Answer- Yes, RBI has told the banks that if they open an account in the name of children, then first of all do a complete KYC i.e. check the identity of the customer. This is necessary so that the account can be opened safely and correctly.
When the child turns 18, the bank will have to take a new signature and new instructions from him to operate. RBI has given banks time till July 1, 2025, so that they can update their policy and prepare to run minor accounts properly. This will ensure that children’s accounts are operated with complete security and transparency, and their personal information is also completely safe.