Fino Payments Bank launches 'Bhavishya' savings account for minors1 min read . Updated: 07 Jul 2020, 05:34 PM IST
- Bhavishya, a subscription-based savings account, can be opened by paying a nominal amount
- The bank will initially introduce the Bhavishya savings account in UP, Bihar, and MP and gradually in other states
NEW DELHI : Fino Payments Bank Limited on Monday announced the launch of a savings account scheme for minors aged between 10-18 years.
'Bhavishya', a subscription-based savings account, can be opened by paying a nominal amount.
The bank will initially introduce the Bhavishya savings account in UP, Bihar, and MP and gradually in other states.
Citing the 2011 census, the bank said India’s population in the age group of 10-19 years was over 250 million and in 2021 this is expected to go up. More than 70% of this population lives in rural areas.
This presents a huge opportunity for the predominantly rural-based Fino Payments Bank.
“India derives strength from its vast youth population. While gaining other skill sets, it is important that children take to banking early," Fino Payments Bank Chief Operating Officer Ashish Ahuja said.
An easy to operate Aadhaar seeded account will be of great advantage to parents for inculcating savings habit in their children, he added. Also, the Bhavishya savings account can be used to get benefits of various government schemes for children such as scholarship and DBT (direct benefit transfer) subsidy amount.
"We see good potential and expect to open around one lakh Bhavishya Savings Accounts by the end of FY21. As they become adults, account holders will be able to plan their financial goals in a much better way. Our endeavour is therefore in sync with the national financial inclusion agenda," Ahuja said.
Benefits of Bhavishya savings account includes, no minimum account balance requirement and a free debit card, which can be used at ATMs only to withdraw cash with Aadhaar authentication.
For security reasons minor should have a mobile number that is different from the parent’s number.
Further, on attaining 18 years of age, the Bhavishya savings account will be upgraded to regular savings account on submission of Re-KYC with updated information.