Kotak Mahindra bank has initiated a scheme to rope in minors for banking activities and bring them under the financial inclusion. The saving account can be opened for children ranging between 0-10 year that would have facility such as debit-cum-ATM cards, recurring deposits and increased interest rates. Informing about the step Executive vice-president of the Bank Mahesh Balasubrmanian said that the bank would encourage saving habits among the children from early.
“Awareness about children can have a bank account is very low. This would provide tax benefits for the parents and other investment options such as through SIP. The junior account holder can avail services at popular food chains as well.”
The bank is looking forward to open 50,000 such accounts across the country out of which about 1,000 would be in Jharkhand by the end of next fiscal. It also has four branches in the State with about Rs 130 crore deposit.