RBI allows minors aged 10 and above to independently operate bank accounts

In a bid to promote financial literacy, the Reserve Bank of India (RBI) has now allowed minors aged 10 and above to independently open and operate their bank accounts.

The RBI has emphasized that banks will set limits and conditions for the operation of such accounts as per their internal policies, which must be explained to the minors in detail. The RBI also stressed that such accounts should always be in credit.

The RBI circular stated, “Minors above the age of 10 years, and up to such amounts and terms as may be fixed by the banks, keeping in view their risk management policy, may be allowed to open and operate savings/term deposit accounts independently if they so desire. Such terms shall be duly conveyed to the account holder.”

Banks have been directed to align their policies with the new norms by July 1, 2025.

However, the RBI clarified that these rules are not mandatory. Banks may choose whether to implement them fully, depending on their internal risk policies and customer suitability assessments.

The circular noted, “Banks are free to offer additional banking facilities like internet banking, ATM/debit cards, cheque book facilities, etc., to minor account holders, based on their risk management policy, product suitability, and customer appropriateness.”

Furthermore, the Reserve Bank stated that once the minors turn 18, banks will need to seek fresh operating instructions and a specimen signature. If the account was managed by a guardian, the bank will confirm the balance.

The RBI also announced that minors of any age can open savings or fixed deposit accounts in their name and operate them through their natural or legal guardian, including their mother.