Children Above 10 Years Can Now Operate Bank Accounts Independently: RBI

 

The Reserve Bank of India (RBI) on Monday allowed children above 10 years of age to independently open and operate savings and fixed deposit accounts. The central bank issued revised guidelines on the opening and operation of minor accounts.

In its circular to commercial and cooperative banks, the RBI stated that minors of any age can open and operate savings and term deposit accounts through their natural or legal guardians. In certain cases, minors can also open accounts with their mother as the guardian.

Once the minor reaches adulthood, fresh instructions for account operation and specimen signatures must be obtained and recorded.

The RBI added:
"Banks are free to offer additional services such as internet banking, ATM/debit cards, cheque books etc., to minor account holders at their discretion, based on their risk management policies, product criteria, and customer profiles."

However, banks must ensure that withdrawals from minor accounts — whether independently operated or through guardians — do not exceed the balance in the account, and there must always be a positive balance.

Banks have been instructed to formulate new policies or amend existing ones in line with the revised guidelines by July 1, 2025.