A person who has not attained the age of 18 years is a minor. A minor cannot enter into a contract. Therefore any contract with minor is void. However a bank can accept and open a minor's account if it is directed by the guardian court. The court appoints a guardian of a minor who obtains and signs the prescribed opening form of the account himself. He gives his own specimen signatures for the operation of the account. Each withdrawal from the minor's account by the guardian is subject to the approval and sanction of the guardian court. On attaining the age of majority which is 21 years, the minor is allowed to open and operate the account himself. The authority of legal guardian ceases to exist.
It may there be noted that when a bank accepts a minor as its customer, he or she is not allowed the overdraft facility. In addition to this no term loan can be advanced to him. Here minor is treated not as an ordinary customer. The relationship between the minor and the bank is of special nature and is governed from relevant section of the law enforced in the country. So the minor can open an account through some guardian.
It may there be noted that when a bank accepts a minor as its customer, he or she is not allowed the overdraft facility. In addition to this no term loan can be advanced to him. Here minor is treated not as an ordinary customer. The relationship between the minor and the bank is of special nature and is governed from relevant section of the law enforced in the country. So the minor can open an account through some guardian.