26.

TYPES OF DEPOSIT ACCOUNTS FOR MINORS

1. Self-Operated Minor Account: Minors above 10 years of age, who are literate and
can sign uniformly, can open and operate Savings or Fixed Deposit/Recurring Deposit
accounts in their own name.

2. Accounts Under Guardianship: A guardian can open a deposit account solely in the
minor's name and operate it on behalf of the minor. The Supreme Court judgment
allows mothers to open and operate all types of deposit accounts, even if the father is
alive, with both parents acting as natural guardians simultaneously.

3. Joint Accounts with Guardian: Accounts can be opened jointly in the name of the
minor and the guardian.

4. Current Account in the Name of Minor: No current account should be opened in the
name of a minor unless a guardian of the minor's property has been appointed under
the Guardian and Wards Act. In such cases, the account should be opened in the
form: "A-B’ minor, by his guardian, ‘C-D’". The guardian cannot draw on the account
after the minor attains majority.

5. Advance against Minor’s Deposit: Minors cannot be granted loans, but loans can be
availed against deposits held in the minor's name. The natural guardian must execute
loan documents on behalf of the minor, and the loan proceeds should be used for the
minor's benefit.

Handling When the Minor Attains Majority:

 When the minor becomes a major, they have sole rights to operate the account, not
the guardian.
 Term deposits maturing after the minor attains majority cannot be foreclosed by the
guardian. The amount is paid to the minor upon reaching majority.
 Upon reaching majority, a fresh account opening form should be taken from the
individual, and operations should follow their instructions.

Deceased Minors' Accounts

 Death of Minor: The balance is payable as a claim case.

 Death of Guardian: The balance is treated as a trust and paid to the minor upon
reaching majority.