RBI Permits Minors above 10 to Operate Bank Accounts Independently

The Reserve Bank of India recently permitted banks to allow minors above the age of 10 years to open and operate savings/term deposit accounts independently on their own. 

RBI has issued revised instructions on opening and operating the minors’ deposit accounts. 

Minors of all ages may be allowed to open and operate their 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 guardians.

The circular further said “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.”

Further, on obtaining majority age, fresh operating instructions and specimen signature of the account holder should be obtained and recorded.

It also states, “The banks are free to offer additional banking facilities like internet banking, ATM/ debit cards, cheque book facility, etc, to the minor account holders based on their risk management policy, product suitability and customer appropriateness.”

The banks will also need to ensure that accounts of minors whether operated independently or through a guardian, are not permitted 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 further said.

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