RBI permits minors above 10 years to operate bank accounts independently

Mumbai | The Reserve Bank on Monday permitted banks to allow minors above the age of 10 years to open and operate savings/ term deposit accounts independently.

The Reserve Bank of India has issued revised instructions on opening and operation in the deposit accounts of minors.

Minors of any age may be allowed to open and operate savings and term deposit accounts through his/ her natural or legal guardian, the RBI said in a circular addressed to commercial banks and cooperative banks.

They may also be allowed to open such accounts with their mother as guardian.

"Minors above such an age limit not less than 10 years and up to such amount and such 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, and such terms shall be duly conveyed to the account holder," the circular said.

Further, on attaining the age of majority, fresh operating instructions and specimen signature of the account holder should be obtained and kept on record.

"The banks are free to offer additional banking facilities like internet banking, ATM/ debit cards, cheque book facility, etc, to the minor account holders basis their risk management policy, product suitability and customer appropriateness," the circular said.

The banks will have to ensure that accounts of minors, whether operated independently or through a guardian, are not allowed to be overdrawn and that these always remain in a credit balance.

Also, the banks shall perform customer due diligence for opening of deposit accounts of minors and undertake ongoing due diligence, RBI added.

The RBI has asked banks to make new or amend existing policies to align them with the revised guidelines, latest by July 1, 2025.