The Reserve Bank of India (RBI) has allowed minors aged 10 and above to independently open and operate savings or term deposit accounts—if they wish to do so and their bank agrees.
The central bank, through a circular sent to commercial and cooperative banks, said the revised rules are part of broader changes concerning deposit accounts held by minors. These new norms allow young account holders more financial freedom, but within limits set by individual banks under their risk management policies.
Minors of any age can still open savings and term deposit accounts the old-fashioned way—under the watchful eye of a parent or legal guardian. Interestingly, the RBI has explicitly stated that such accounts may be opened with the mother as the guardian, a move that could be seen as a nudge towards greater inclusivity.
But here’s the big shift: banks may now permit minors aged 10 and up to open and run their own accounts. Of course, banks will have the final say—depending on their internal policies and the safeguards they want in place. These rules can cover how much money the account can hold, what features it offers, and any restrictions that apply.
The RBI has left the door open for banks to offer internet banking, ATM or debit cards, and even cheque book facilities to minor account holders. But it’s not a free-for-all. Banks have been told to consider factors like product suitability and customer awareness before handing over these features to minors.
What they must not allow, however, is overdrafts. The RBI made it clear that minor accounts—whether self-operated or guardian-managed—must always maintain a credit balance. No borrowing, no negative balances.
Once a minor account holder turns 18, banks will have to collect fresh operating instructions and a specimen signature. In essence, the young adult must now officially take charge of the account as a major.
The central bank hasn’t relaxed its stance on compliance. Banks are expected to perform full customer due diligence when opening accounts for minors and continue monitoring them as per standard procedures.
To make sure there’s no confusion, the RBI has directed all banks to revise or amend their existing policies to match these new instructions by July 1, 2025.
