State Bank of India (SBI) is reportedly planning to roll out a special scheme for children, as part of its strategy to make the best of this untapped banking segment.
The new move follows the Reserve Bank of India (RBI) announcement, which asked banks to allow minors over 10 years to operate bank savings accounts independently and use facilities including ATMs and cheque books.
Go deeper with GlobalData
SBI chairperson, Arundhati Bhattacharya, was quoted by PTI as saying: "We do open accounts for children but we have restrictions on overdrafts as if there is overdraft, we would not be able to realise it.
"There is no restriction on deposits, though. And we are going to launch a special scheme for children in the next three months."
With the recent directive, the central bank aims to promote financial inclusion and provide equality in opening of such accounts in banks.
"Banks 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," the RBI had said.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
