Understanding eKYC for minors and children is crucial for parents seeking to open accounts for their wards. This comprehensive guide explains age requirements, process, documentation, and regulatory compliance for minor KYC through Aadhaar eKYC.
Can Minors Use Aadhaar eKYC?
According to RBI and UIDAI guidelines, children below 18 years can use Aadhaar eKYC only with parental or guardian consent. The process requires adult authorization and documentation for regulatory compliance.
Age Requirements for eKYC
Age 0-10 years: No independent eKYC allowed. Accounts opened in guardian’s name with minor as nominee.
Age 10-18 years: Can use eKYC with parent/guardian consent and documentation.
Age 18+ years: Can independently complete eKYC without guardian consent.
Age Verification for Minors
Documents Accepted:
- Birth certificate
- School admission certificate
- School leaving certificate
- Passport (if available)
- Vaccination certificate
- Health insurance document showing age
- Driving license (age 16+)
RBI Compliance for Minor KYC
According to RBI’s Master Direction on KYC, banks must:
- Verify age through valid documents
- Obtain guardian consent
- Maintain guardian contact information
- Track account until minor turns 18
- Update KYC when minor attains majority
Process for Minor eKYC
- Guardian initiates eKYC with minor’s Aadhaar
- Enter minor’s demographic details
- Verify guardian’s identity and consent
- Complete authentication (OTP or biometric)
- Submit age proof document
- Bank verifies information
- Account activated for minor
Documents Required
For Minor:
- Aadhaar card
- Age proof document
- Address proof (usually same as guardian)
For Guardian:
- Identity proof
- Address proof
- Consent letter (some banks require)
Banks Offering Minor eKYC
Public Sector: SBI, BOB, BOI, Central Bank
Private Sector: HDFC, ICICI, Axis, Kotak
Benefits of Minor eKYC
Children learn money management early
Quick account opening without extensive documentation
- RBI compliant process
- Safe storage for children’s savings
- Access to digital banking from young age
- Building financial discipline
Transition to Adult Account
At age 18, minor accounts automatically convert to adult accounts with:
- Updated KYC requirements
- Enhanced transaction limits
- Independent account control
- Full digital banking access
Limitations for Minor Accounts
Withdrawal limits: Usually Rs. 1-5 lakhs
Monthly transaction limits
No independent loan access
No credit card eligibility
Guardian oversight continues
Safety Features for Minor Accounts
Parental controls on transaction amounts
Guardian approval for large transactions
Restricted fund transfers
Monitoring and alerts for parents
Secure PIN and password protection
Types of Minor Accounts
Savings Account: Standard account for savings
Education Account: Specifically for educational expenses
Future Goal Account: Savings toward future objectives
Monthly Income Plan: For regular deposits
Special Schemes for Minors
Sukanya Samriddhi Yojana (SSY): For girls
Pradhan Mantri Sukanya Samriddhi Yojana benefits
Tax-free growth on contributions
Government support for education
PPF Account: For minors with parental KYC
Post Office Savings Account: For children
Mutual Funds: Can invest through guardian
Life Insurance: Available for minors
Challenges in Minor eKYC
Age Proof Documentation: Limited documents available
Guardian Authorization: Coordination challenges
Biometric Issues: Fingerprint changes with age
Address Changes: Frequent moves during school years
Transaction Restrictions: May limit usage
Solutions to Minor eKYC Challenges
Multiple age proof options accepted
Simplified guardian consent process
Biometric updates at intervals
Automatic address updates
Progressive transaction limit increases
FAQ on Minor eKYC
Q: Can a 10-year-old open independent account?
A: No, requires guardian consent and documentation
Q: Which age proof documents are accepted?
A: Birth certificate, school admission, passport recommended
Q: What happens at age 18?
A: Account auto-converts to adult with updated KYC
Q: Can minors use digital banking?
A: Yes, with parental controls and supervision
Q: Are there transaction limits?
A: Yes, usually Rs. 1-5 lakhs monthly
RBI Compliance Requirements
Banks must maintain:
- Guardian contact information
- Age verification documents
- Consent records
- Account transition documentation
- Compliance audit trails
Future of Minor eKYC
Increased digital adoption
Enhanced parental controls
Better age verification technology
Expanded product offerings
Financial literacy integration
Conclusion
Minor eKYC through Aadhaar provides a secure, compliant way to introduce children to banking and digital finance. With proper guardian consent, age verification, and RBI compliance, parents can confidently open accounts for minors and teach financial responsibility from an early age. As children transition to adulthood, their accounts evolve with expanded capabilities and independent control.