Minors aged above 10 years can now operate bank accounts independently

Mumbai: In a move set to expand financial access for young individuals, the Reserve Bank of India (RBI) on Monday announced that minors aged 10 years and above can independently open and operate savings and term deposit accounts, subject to banks’ discretion and internal policies.

The RBI issued updated guidelines to all commercial and cooperative banks, detailing provisions for minor account holders. “Minors above such an age limit of not less than 10 years... may be allowed to open and operate savings/term deposit accounts independently, if they so desire,” the circular stated. The terms and limits applicable will be determined by individual banks, considering their risk management policies.

Banks may also permit minors of any age to open accounts through natural or legal guardians, including the mother. “Such terms shall be duly conveyed to the account holder,” the RBI noted.

Upon reaching the age of majority, fresh operating instructions and a specimen signature must be collected from the account holder, the central bank added.

Additional banking services like internet banking, cheque books, and debit cards may be extended to minor account holders at the banks’ discretion. “Banks are free to offer additional banking facilities… based on their risk management policy, product suitability and customer appropriateness,” the RBI said. All minor accounts must remain in credit and cannot be overdrawn. The RBI also directed banks to ensure proper customer due diligence for such accounts and to revise or create new policies in line with the guidelines by July 1, 2025.