Fino Payment Bank Introduces 'Bhavishya' Savings Account For Minors
Fino Payments Bank Limited has announced that it has launched a savings account for minor children aged between 10 and 18 years. Bhavishya, a subscription-based savings account, is aimed at making children banking ready, inculcating a savings habit.
The bank will initially introduce Bhavishya Savings Account in UP, Bihar and MP and gradually launch in other states.
As per the 2011 census, India’s population in the age group of 10-19 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. With 80% of its 2.25 lakh banking network in villages, Fino plans to reach out to rural households to create awareness and open the Bhavishya Savings Account for children.
Explaining the need for this product, Ashish Ahuja, Chief Operating Officer, Fino Payments Bank said, “India derives strength from its vast youth population. While gaining other skill sets, it is important that children take to banking early. An easy to operate Aadhaar seeded account will be of great advantage to parents for inculcating savings habit in their children. Also, the Bhavishya Savings Account can be used to get benefits of various government schemes for children such as scholarship and DBT 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 endeavor is therefore in sync with the national financial inclusion agenda” added Ahuja.
The benefits of the 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, minors should have a mobile number that is different from the parent’s number. Further, on attaining 18 years of age, the BhavishyaSavings Account will be upgraded to regular savings account on the submission of Re-KYC with updated info.
