May 12, 2014
The Chief Executive Officer
All Primary (Urban) Co-operative Banks
Opening of Bank Accounts in the Names of Minors
Please refer to our circular UBD.(DC) 1148/V.1-84/85 dated February 22, 1985, in terms of which banks were advised to allow minors’ accounts (fixed and savings deposit accounts) 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. Subsequently, Urban Co-operative Banks (UCBs) were advised to extend the facility of allowing opening of minors’ account with mothers as guardian, to Recurring Deposits.
2. With a view to promoting the objective of financial inclusion and also to bring uniformity among banks in opening and operating minors’ accounts, banks are advised as under:
3. UCBs are free to offer additional banking facilities like 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.
Principal Chief General Manager