How to open a bank account for a minor in india

How To Open A Bank Account For A Minor

As a custom in India, parents start saving money for their girl child as soon as they are born, especially in rural areas; in urban areas, too, in order to inculcate the habit of saving money from the very beginning, children are given piggy banks. Nowadays, we have much better options to facilitate both rural and urban populations by providing a bank account for minors.

Here’s all you need to know about how to open a minor’s bank account.

Procedure to Open a Bank Account For Minors

A bank account can be opened by visiting the bank physically or by applying for it online, we will discuss both procedures:

Opening the bank account offline:

Parents have to visit the branch of the bank along with their children. They will have to carry the KYC documents along, after selecting the preferred type of savings bank account, a form has to be filled and a passport-size picture of the primary account holder and the parents along with the KYC documents will have to be submitted. Once the documents are checked by the bank, which only takes a few minutes these days, your account can be activated.

Opening a bank account online:

Parents will have to go to the official website of the bank or a partner website and enter their mobile number preferably the one registered with the Aadhar. An Aadhar-linked number will help the bank to pull their basic details beforehand, making the process quick. Where parents can select a slot for the next working day covenant to them in most cases.

After registering the number an agent from the company will get on a call with the parents for the KYC checks at that point in time they must have their PAN card or Aadhar card handy. The caller will get on a video call after taking their permission and take a picture of the parent and the primary account holder with a clear background from their end. This will finish the KYC process and the bank will start an account in your name.

All required details of this account will be sent to the account holder in an email and a kit will be sent by post within seven working days carrying your checkbook and other details.

KYC

KYC is the most important requirement for opening a bank account or any financial transaction, without providing proper documents for KYC checks it is not possible to open a bank account.

Banks providing accounts for minors have the provision of KYC checks of the parents. Banks ask for the date of birth of the minor and the KYC documents of the parents. Some banks ask for the birth certificate of the minor and some do not ask for it.

KYC documents of the parents:

Following are the documents required by Indian citizens for the KYC checks:

Passport

Voter’s Identity Card

Driving License

Aadhaar Letter/Card

NREGA Card

PAN Card

KYC documents for NRI parents:

Following are the documents required by NRIs to open a bank account attested by a notary, the Indian embassy of the country where they live, or the foreign office:

Photograph

Photographs of the account holder and the parents are also required, In some banks two and in some banks just one. Nowadays in most of the private banks photographs are taken by the bank staff in the office and at times during a video call as well. The only factor essential is the photograph to be in a clean backdrop.

Frequently Asked Questions (FAQs)

Is it always necessary to visit a branch for the parents to get a new account opened for their kids?

Not really, it can be done online and by calling an agent to their home for the formalities, but there are a few banks in India that do not have the online facility. Though, most of the big banks have the facility of online opening of bank accounts.

Are all the bank accounts the same for minors?

Various banks have come up with various facilities and perks to attract youngsters, hence bank accounts differ in terms of facilities, some bank accounts provide the facility to select the account number of the account holder’s choice, and some print the picture of the youngsters in the debit cards and like this, there are various offers to select from.

Are the interest rates the same for minor bank account holders?

No, every bank has a different interest rate, and they start from 2% and can go up to 7%.