Do you ever face problems depositing cash in a minor account? If you are looking for a solution, you are definitely in the right place.
But, before we go any further, let us see some basics of minor accounts.
What is a minor savings bank account?
It’s a savings bank account meant for children who are below 18 years of age. If you are under this age bracket, you may own it in your name.
Or you can have it for your children who are minors.
You can have the facility in any bank, it may be in public sector banks, private banks or cooperative banks.
All the banks have it in different product names but the basics are all same as it has to follow certain guidelines laid down by RBI and other regulatory bodies.
Facilities of Minor Account
Just like a normal savings bank account, a minor account has a number of inbuilt facilities that one gets while opening the account.
These facilities include-
- Cheque books
- ATM cards
- Internet banking
- SMS alert
All these facilities come with limited usage, unlike normal savings bank accounts. Various banks capped limitations on these accounts to abide by the rules and regulations laid down by regulatory authorities like RBI.
How much balance can you maintain?
A minor can not have a bank account balance beyond ₹1 lacs per annum. It’s ₹2 lacs if maintain jointly with the guardian.
A fixed deposit upto ₹10 lacs is permitted only if it’s operated along with the guardian.
So, no matter what, if you are a minor, you can not have money beyond the prescribed limit else you will not be able to withdraw or deposit in your account.
Your account will be frozen.
So, let us find out the rules you need to abide by to continue using your minor account smoothly.
- Make your account fully KYC compliant as per the bank’s guidelines.
- Make sure you do transactions every now and then. It means do not let your account mark as inoperative.
- Always abide by the terms and conditions of the minor accounts. That means the account balance at any point in time should be below the prescribed limit.
Why can’t you deposit cash in the minor account?
As we have seen that in the minor account, the amount of cash you can put in is limited and restricted to ₹1 and ₹2 lacs as per the type of account such as single or jointly operated with a guardian.
Make sure that transactions do not go beyond the prescribed limit else you will not be able to deposit cash.
Secondly, when the minor becomes major, these savings accounts will automatically go on Stop Account status.
This might be another reason why you can not deposit cash in the account successfully.
Last but not the least, if you are unable to deposit money in the minor account. Check all the details you have provided in the bank are proper. It includes your KYC, whether the specimen signature is uploaded in the system or not.
Else your account should be alright.
Also, read how to open an SBI savings account.
But remember that the minor savings bank account comes with limited transactions right? One has to abide by the terms and conditions of the contract. And when one becomes major, that is when a person gets 18 years or more, the account becomes stop automatically.
At this moment one should go to the bank and update all the details. Submit your KYC (Know Your Customer) document. Your bank may ask you to provide a fresh specimen signature.
The rest is good to go.
For more details on KYC guidelines click here.
1 thought on “Why can’t you deposit cash in minor account?”
Your article helped me a lot, is there any more related content? Thanks!