In Pakistan, individuals under 18 years old (referred to as minors) can open bank accounts under specific conditions, especially if they are earning income, including foreign currency. Here's an overview of the legal framework, State Bank of Pakistan (SBP) policies, and procedures to open a bank account for minors.

Legal Provisions for Minor Bank Accounts

According to Pakistani law and banking regulations, minors are allowed to open bank accounts, but these accounts must be managed by a guardian until the individual reaches the age of majority (18 years). The purpose of this rule is to provide a secure financial system for minors while ensuring proper oversight of their finances.

State Bank of Pakistan (SBP) Guidelines

The SBP has issued specific guidelines for opening accounts for minors under its "Asaan Account" framework. These guidelines make it easier for minors to open accounts and cater to their specific needs.

1. Account Management: The account is opened in the minor's name, but it is operated by the guardian until the minor turns 18.
2. Documentation Requirements: Banks require proof of the minor's identity and the guardian's identity. Accepted documents include:
3. Minor’s Form-B, birth certificate, or student ID card.
4. Guardian’s CNIC (Computerized National Identity Card).
5. Foreign Currency Transactions: Minors can receive and manage foreign earnings (e.g., in dollars) through these accounts under their guardian's supervision.

Earnings in Foreign Currency

If a minor earns in foreign currency, such as through freelance work or online platforms, they can deposit their earnings into their bank account. The guardian is responsible for managing these funds until the minor becomes an adult.

Can a Minor Open an Account Without Using a Parent’s Account?

Yes, if a minor does not wish to use a parent’s account, they can opt for an account opened and managed by a legal guardian or another trusted adult. The role of the guardian is critical, as they are responsible for managing the account and ensuring compliance with banking regulations.

Step-by-Step Process for Opening a Minor’s Bank Account

Here’s a simple process to open a minor’s account in Pakistan:

1. Choose a Suitable Bank

Several banks in Pakistan, offer minor-specific accounts. Research their terms to find the best fit.

2. Prepare the Required Documents

Gather the necessary documentation, including:

1. For the Minor: Form-B, birth certificate, or student ID.
2. For the Guardian: A valid CNIC or other acceptable identification.

3. Visit the Bank

Both the minor and their guardian must visit the bank branch to complete the account-opening formalities.

4. Fill Out the Application Form

The guardian completes the account-opening application on behalf of the minor.

5. Provide the Initial Deposit

Some banks may require a small initial deposit to activate the account.

6. Account Activation

After verifying all documents and processing the application, the bank activates the account.

What Happens When the Minor Turns 18?

Once the minor reaches the age of majority, the bank account can be transferred to the minor's sole ownership. This means:

1. The minor now has full control over the account.
2. The guardian no longer manages the account.

Important Considerations for Minors' Accounts

1. Role of the Guardian: A guardian must act responsibly, as they control the account until the minor turns 18.
2. SBP Regulations: All accounts must comply with SBP’s guidelines to prevent misuse and ensure financial security.
3. Bank-Specific Policies: Each bank may have additional requirements or procedures for opening a minor’s account.

Conclusion

Opening a bank account for a minor in Pakistan is a straightforward process guided by clear regulations from the State Bank of Pakistan. Whether a minor is earning in local currency or foreign currency, they have the right to a dedicated account managed by a guardian. This ensures that minors can safely participate in financial systems while complying with the law.

For detailed information, refer to the State Bank of Pakistan’s official guidelines or consult with your chosen bank to understand their specific policies.