RBI allows minors over 10 years to operate bank accounts independently in India

India's central bank, the Reserve Bank of India (RBI), announced on Monday, April 21, that minors above the age of 10 will be able to open and operate independent bank accounts, reported the news agency PTI.

According to the report, the minors will be able to independently open and operate a savings bank account, along with term deposit accounts. 

“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,” said RBI in the circular cited the news agency.

RBI's notice also said that after the minors attain the age of majority, fresh operating instructions and specimen signature of the account holder will be required to be kept on the record of the bank. 

The central bank also permitted that the banks are permitted to offer additional banking facilities to minor accounts based on their risk management policy.

“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,” reported the news agency, citing the circular.

What if minor is under 10 years of age?

In case a minor is under 10 years of age, they can still open their bank accounts, but it has to be done through his or her natural or legal guardian, as per the circular to the commercial and cooperative banks.

The minors under the age of 10 years, will also be allowed to open such bank accounts with their mother as a guardian.

The banks are directed to ensure that the bank account for minors, irrespective of whether it is operated independently or through a guardian, will not be allowed to be overdrawn and that there should always remain a credit balance, as per the report.

The banks are also directed to perform a due diligence process for the customers, for opening deposit accounts of minors, and undertake ongoing due diligence, reported the news agency citing RBI.

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