RBI Big Announcement The Reserve Bank of India has made a big announcement yesterday i.e. on 21 April. Under this announcement, now minor children above 10 years of age will be able to operate their savings and FD accounts themselves. Why has the RBI taken this decision and what can be the advantages and disadvantages of this. Let's know about it in detail.
The country's central bank, the Reserve Bank of India, has taken a big step for children. The bank has taken this decision so that children can understand financial responsibilities. Along with this, it will be easy for parents to give freedom to their children.
As per the announcement made by RBI on 21 April, now children aged 10 years and above will be able to operate their accounts themselves. Along with this, they will also be able to manage it. This new rule will be applicable in all the banks of the country like commercial, domestic, financial institutions.
Along with this, RBI has also instructed all the banks that to reduce the financial crisis, the banks will have to set some rules on their own. These rules can be related to withdrawal and deposit amount. Every bank will be allowed to make different rules regarding this.
So that there is no problem in future. Along with this, the rules set by the bank will be applicable in both the situations. Whether the account is opened by the parents or is being operated by the child himself.
When will the rule be implemented?
According to the announcement made by RBI, this new rule will be implemented in all banks from July 2025. Therefore, RBI has instructed the banks to complete the preparations for this change in advance.
As soon as the child turns 18 years old, new signatures will be taken by the bank. Along with this, these bank accounts will be opened as per KYC rules.
Which means that to open a child's bank account, it is necessary to have necessary documents like Aadhaar card.
Why was this rule introduced by RBI?
This rule has been brought by the Reserve Bank of India so that children can understand financial responsibilities in advance. They should know how the bank works. Along with this, it should be easy to give responsibility to the parents.
