SBI launches savings bank accounts for children

RBI had in May allowed minors more than 10 years old to open and operate savings bank accounts independently

State Bank of India, the country’ largest lender, has now launched two new savings bank accounts for children — Pehla Kadam and Pehli Udaan.

This comes after the Reserve Bank of India in May this year allowed minors aged more than 10 years to open and operate savings bank accounts independently.

While Pehla Kadam is a savings bank account for minors of any age operated jointly with his/her parent/guardian, Pehli Udaan savings bank account can be operated independently by a minor aged 10 years and above.

Customers opening these accounts will be given a cheque book, a passbook and an ATM Card.

Apart from this, account holders will also be allowed internet banking facilities which can be used for certain select transactions like bill payment, opening of fixed deposits, recurring deposits, etc. with a daily transaction limit of Rs 5,000. These features will also be available on mobile banking platforms with a daily transaction limit of Rs 2,000.

Auto sweep with a minimum threshold of Rs 20,000 and in multiple of Rs 1,000 with a minimum of Rs 10,000 will also be allowed in these accounts.