RBI Allows Minors Above 10 to Operate Bank Accounts Independently – New Rules Explained
New Delhi, April 23, 2025 – In a significant move, the Reserve Bank of India (RBI) has announced that minors above 10 years can now open and operate their own bank accounts without requiring a guardian. This new rule applies to all commercial and cooperative banks, including primary urban cooperative banks, state cooperative banks, and district central cooperative banks.
Key Highlights of RBI’s New Rule for Minor Bank Accounts
- Minors aged 10 and above can independently open and manage savings or term deposit accounts.
- Banks have the flexibility to set transaction limits and terms based on their risk policies.
- Guardians can still open accounts for minors of any age, but those above 10 can operate accounts on their own.
- Once the minor turns 18, banks must update account details, including fresh signatures and balance confirmation.
- Additional services like internet banking, debit cards, and cheque books may be offered after a bank’s risk assessment.
- Overdrafts or loans will not be permitted in minor-operated accounts.
- KYC norms must be strictly followed when opening these accounts.
What Does This Mean for Young Account Holders?
This RBI decision aims to promote financial literacy among children while giving them early exposure to banking. Banks must comply with the new guidelines by July 1, 2025, ensuring smooth implementation.
Read more about RBI’s latest banking rules for minors here.
