Mumbai, April 21 – In a major update aimed at promoting financial inclusion among the youth, the Reserve Bank of India (RBI) has allowed children above the age of 10 to independently open and operate savings and fixed deposit accounts. As per agency report, the central bank issued revised guidelines to all commercial and cooperative banks regarding the opening and operation of minor accounts.
Under the new guidelines, minors of any age can open savings and fixed deposit accounts through their natural or legal guardians. The RBI has also clarified that minors may designate their mother as the guardian while opening such accounts.
However, a key change now permits minors aged 10 years and above to independently open and operate savings or term deposit accounts if they wish to do so. Banks, in turn, can determine withdrawal limits and operational conditions based on their internal risk management policies. These terms and conditions must be clearly communicated to the account holder.
Additionally, once a minor turns 18, banks are required to obtain fresh operational instructions and updated signature specimens for record-keeping purposes.
The RBI circular also states that banks are free to offer internet banking, ATM/debit card access, cheque book facilities, and other such services to minor account holders, depending on their internal policies and product offerings. However, banks must ensure that no overdrafts are permitted on these accounts and that they always maintain a positive balance.
Further, the RBI emphasized that banks must conduct proper due diligence both at the time of opening minor accounts and on an ongoing basis. To ensure full compliance, the central bank has instructed all banks to formulate new policies or amend existing ones in line with the revised guidelines by July 1, 2025.
