Guwahati: The Reserve Bank of India (RBI) is now allowing minors aged 10 years and above to open and operate savings and term deposit accounts independently.
This new directive, issued on April 21, is designed to foster greater financial inclusion among younger individuals. Issued on April 21, the new guidelines aim to boost financial inclusion.
Banks must follow these guidelines by July 1, 2025, while making sure to check and monitor accounts properly.
This rule applies to all commercial banks and cooperative banks, including primary (urban) cooperative banks, state cooperative banks, and district central cooperative banks.
This move comes after a review of the older guidelines, which were first issued many years ago. The RBI has now simplified and combined the rules for opening and running deposit accounts for minors.
“Minors of any age may be allowed to open and operate savings and term deposit accounts through his/ her natural or legal guardian,” said RBI.
As per the new rule, any minor, regardless of age, can open a savings or term deposit account through their natural or legal guardian.
However, minors who are at least 10 years old can now open and manage these accounts on their own, if they wish to do so.
Banks can also offer additional services like internet banking, debit cards, or cheque books, based on what’s suitable for the customer and in line with their risk policies. Regardless of whether the account is managed independently or by a guardian, it must always remain in a positive balance (balance never falls below zero).
Before the recent change, the RBI allowed minors to open savings accounts, but they needed to do so through a guardian, such as a parent or legal guardian. The guardian would operate the account on the minor’s behalf.
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Minors could not independently manage their accounts unless they were of a certain age (typically 18 years) to reach the age of majority.
