In a significant move aimed at enhancing financial inclusion among the younger population, the Reserve Bank of India (RBI) announced on Monday that minors aged 10 years and above will now be permitted to independently open and operate their own savings and term deposit bank accounts.
According to a circular issued by the central bank and cited by news agency PTI, this new provision is subject to the individual banks’ internal risk management policies. The RBI clarified that these accounts can be opened and operated independently by minors, provided they meet the minimum age criteria and other conditions specified by the respective banks.
“Minors above such an age limit not less than 10 years… may be allowed to open and operate savings/ term deposit accounts independently, if they so desire, and such terms shall be duly conveyed to the account holder,” the RBI stated in its circular.
Once the account holder reaches the age of majority (18 years), banks will be required to obtain fresh operational instructions and a specimen signature from the individual to continue account services.
The central bank further permitted financial institutions to extend additional services to these minor accounts, including internet banking, debit/ATM cards, and cheque books, again based on their internal policies regarding product suitability and customer appropriateness.
For children under the age of 10, bank accounts may still be opened, but must be managed through a parent or legal guardian. Notably, the RBI has allowed such accounts to be opened with the mother as the registered guardian, reflecting a step toward gender-inclusive practices.
RBI has also mandated that all minor accounts—whether operated independently or through guardians—must not be overdrawn and should always maintain a positive balance. Additionally, banks are required to perform thorough due diligence when opening and maintaining deposit accounts for minors.
Banks have been directed to formulate or revise their internal policies to align with these new guidelines by July 1, 2025.