SBI or State Bank of India, India’s largest bank by the number of customers, offers a host of savings bank account facility to minors. This facility is given under its personal banking portfolio. It is providing two types of savings accounts for minors: Pehla Kadam and Pehli Udaan.
According to SBI's corporate website - sbi.co.in, SBI's Pehla Kadam account can be opened in the name of a person below 18 years of age and the Pehli Udaan account is meant for those who are above 10 years of age.
SBI's Pehla Kadam and Pehli Udaan account holders are not required to comply with the bank's rules on monthly average balance (MAB), which are applicable on its regular savings accounts.
Pehla Kadam, Pehli Udaan: Important Things
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Eligibility Criteria:
Pehla Kadam: Minor of any age can open this account but it has to be jointly opened with the parent or guardian.
Pehli Udaan: It can be opened by a minor above the age of 10 years who can sign uniformly. Also, this account has to be opened in the sole name of the minor.
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Cheque Book Facility
Pehla Kadam: SBI issues personalised chequebook with 10 cheque leaves in the name of minor under guardian.
Pehli Udaan: SBI issues personalised chequebook with 10 cheque leaves if the minor can sign uniformly.
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ATM-cum-Debit Card
Pehla Kadam: Account holder's photo embossed ATM-cum-debit card with withdrawal/POS limit of Rs. 5,000 will be issued in the name of the minor and guardian.
Pehli Udaan: Account holder's photo embossed ATM-cum-debit card with withdrawal/POS limit of Rs. 5,000 will be issued only in the name of the minor.
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Internet & Mobile banking
Internet banking: a per day transaction limit of Rs. 5,000 is offered by SBI. Bill payments, inter-bank funds transfer (NEFT only) can be made including the demand drafts from these accounts.
Mobile banking: SBI offers both the accounts have a transaction limit of Rs. 2,000 per day. One can make bill payments, top-ups using the facility can be done.
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Interest Rate
The interest rate on Pehla Kadam and Pehli Udaan is like savings bank account. The bank offers an interest rate of 3.50 per cent per annum. Adding to it, nomination facility is also available with SBI's Pehla Kadam and Pehli Udaan accounts.
Pehla Kadam, Pehli Udaan: Documents Required
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The date of birth proof of the minor, KYC of the parent Aadhaar, PAN or Form 60 are important documents required. If Aadhaar number has not been assigned to an applicant, then applicant shall furnish proof of application of enrolment for Aadhaar. If PAN is not submitted, one certified copy of an Officially Valid Document (OVD) along with Form 60 is required, as per SBI.
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In case the applicant is not a resident or is a resident in the states of Jammu and Kashmir, Assam or Meghalaya and does not submit the PAN, he should submit one certified copy of OVD containing details of his identity, address and one recent photograph.
Cheque book of 10 cheque leaves is issued to the guardian in the name of minor under guardian and child's photo embossed SBI ATM-cum-debit card with withdrawal/POS limit of Rs 5,000 is issued in the name of the minor and guardian. However, specially designed branded passbook is issued free of charge.
Interestingly, the per day transaction limit through mobile banking is restricted to an upper limit of Rs 2,000 including bill payments, top-ups. There is auto sweep facility with a minimum threshold of Rs 20,000.
Sweep in multiple of Rs 1,000 with a minimum of Rs 10,000 are allowed. Overdraft against fixed deposits for parent/guardian can be taken subject to fulfilling other terms and conditions. The option of setting up of one standing instruction for recurring deposit, free of charge is also allowed.
The interest rate applicable on the savings bank account for minors is same to that offered on savings bank account calculated on a daily balance. Transferability of accounts to any SBI Branch without changing the account number is allowed.
Nomination facility is available and recommended by SBI.
