Savings bank accounts for children above 10 years - A right move by RBI?
Savings bank accounts for children above 10 years - A right move by RBI?
Kids have another reason to cheer. Now they can have their own independent savings account in the banks. In the recent developments, RBI has given permission to banks to offer savings bank account to children above 10 years. These savings accounts will be independent accounts. Let us see what the people have to say on the new move of RBI?
Yes
• It will make kids more independent as they can now operate their own independent accounts without anyone’s help.
• It will inculcate a habit of saving in the children. They will feel an inner urge to open the accounts and thus, save the money.
• It is in par with the latest change society is facing. Children know more about technology and in case they can use the services for a good objective.
• Children can learn about the financial discipline. They can understand the right use of money by differentiating between needs and wants.
• The new rule will encourage more banking. It is an encouragement to get a better and organized banking system.
No
• Children cannot handle the money and accounts at any early age. They can disclose the sensitive information to other people leading to theft and frauds.
• Children will get more financial freedom which they can’t really handle. Savings is one aspect of having a bank account and expenses the other. So, how will children stay untouched from it.
• They will become the new clients and the new targets of the big financial and investments giants.
• Children won’t care to take any piece of advice from their parents in the coming time. The teenagers do require parents’ advice.
• The accounts of children can be manipulated and can be used by the parents to fulfill their own personal objectives.
Conclusion
RBI has started the new act with an objective to encourage the banking in the untouched areas. Also, it wants children to develop financial responsibility at a very young age. However, the new act can work in the reverse direction too. Parents’ participation would be still required at higher level to make the things work in the right direction.
Discussion
- RE: Savings bank accounts for children above 10 years - A right move by RBI? -Deepa Kaushik (05/13/14)
- Opening a savings bank account is definitely an appreciable move by the RBI. This could help both the kid and the parents in the long run. Parents can go ahead with the savings for their kids by opening an account on their name. This could help saving money for their higher studies or marriage or any other emergency in life.
From kids’ point of view, it would be a very good opportunity for them to learn the importance of saving from the early phase of their life. Also they can get the chance to learn banking and finance much early, the most important aspect of life which is never taught in any school. Savings do play a very crucial role in establishing a nice future. And one can learn better with the practical knowledge rather than the bookish one. With their own bank account, children can learn to handle cash and bank activities in a much better way.
Towards the hard note of life, in case the parents face a hard fate leaving the child alone on this wide world, such an account can help the child to be financially secure with some cash to lead their life till they get stable on their life.
With any such aspect of the living, the savings account for a child is definitely a welcome move. This move will gain a lot many applauds from the masses.
