Minors aged 10 and above can now open and operate bank accounts: RBI
The Reserve Bank of India (RBI) has revised its regulations to allow minors aged 10 years and above to independently open and manage savings and term deposit accounts. The move is aimed at fostering financial awareness among young individuals while granting banks the flexibility to frame terms under their risk management guidelines.
As per the latest RBI circular, minors meeting the age requirement can handle their accounts on their own, within limits and conditions set by respective banks. Additionally, minors may also open accounts jointly with their mother as a guardian.
Banks, at their discretion, may offer additional services such as internet banking, ATM/debit cards, and cheque books to minor account holders, based on their internal policies and risk assessments.
Upon attaining the age of majority, account holders must provide updated operating instructions and specimen signatures to continue using their accounts.
The RBI has instructed banks to carry out thorough customer due diligence when opening minor accounts and to maintain regular verification procedures. All banks are required to align their policies with these revised guidelines by July 1, 2025.
