Minor Bank Account Rules: The RBI has now permitted banks to allow minors above the age of 10 to open and operate savings / term deposit accounts independently.
New Delhi: Minor Bank Account Rules: India’s central bank, the Reserve Bank of India (RBI), has announced some changes in rules related to the opening of bank accounts for minors. The RBI has now permitted banks to allow minors above the age of 10 to open and operate savings/term deposit accounts independently.
According to news agency PTI, the Central bank, in a circular addressed to commercial banks and cooperative banks, minors of any age may be allowed to open and operate savings and term deposit accounts through his/ her natural or legal guardian.
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.
According to reports, the deadline to implement new policies is July 1, 2025. The RBI also said that the central bank will have to take fresh signatures and instructions from the account holder on attaining 18 years.
Also, the circular said that the accounts of minors must always remain in credit, and overdrafts will not be allowed.
“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 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.
With PTI inputs
