RBI should rethink on the move of allowing Minors to operate account
By Joseph Samson
May 15, 2014
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RBI has allowed the minors above 10 yrs to use the credit cards and sign the cheques independently. This has delighted the children and parent but on the other hand it has lead to some serious concerns too. Madhya Pradesh State Commission for Protection of Child Rights (MPSCPCR) stated that it was better have the children with the piggy banks.

Chairperson MPSCPCR Usha Chatruvedi has sent an official protest to RBI governor and asked to rethink regarding this move. Through this move the RBI could be violating the law of the land - Indian Contract Act 1872 which clearly disqualifies a minor from entering into any contractual obligation by specifically laying down "every person is competent to contract who is of the age of majority according to the law to which he is a subject" (section 11).

The technical issue are arising out like minors cannot get the SMS Alerts which an important part of the net banking, because minors are not eligible to get a SIM on their name. On the other hand this will also create resentment among the children with the accounts and without the accounts. This will lead to a social segregation among the children. Therefore seeing these issues RBI should once rethink.

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