RBI allows minors above 10 years to open bank accounts independently

Minors of any age can open and operate savings and term deposit accounts through their natural or legal guardian

The Reserve Bank of India (RBI) has issued comprehensive norms for opening of and operations in the deposit accounts of minors applicable to regulated banking entities, including commercial and cooperative banks.

 

The central bank conducted a review to rationalise and harmonise the extant guidelines.

 

Minors of any age can 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, RBI said in communication. The revised norms come into effect from April 21, 2025.

 

The banks should ensure that accounts of minors, whether operated independently or through a guardian, are not allowed to be overdrawn and that these always remain in credit balance.

 

 

The banks shall perform customer due diligence for opening of deposit accounts of minors and undertake ongoing due diligence, in line with regulatory norms.

 

On attaining the age of majority of account holders, banks should obtain fresh operating instructions and specimen signatures to be kept on record. Moreover, if the account is operated by the guardian, the balance should be confirmed.

 

The banks shall take advance action, including communicating these requirements to minor account holders attaining the age of majority, to ensure fulfilment of these requirements, it added.