RBI Allows Minors Aged Above 10 To Independently Operate Bank Accounts
For minors aged below 10, the accounts can be opened and operated by their parents to legal guardians.
The Reserve Bank of India has allowed minors aged 10 years and above to open and manage savings or term deposit accounts on their own, news agency PTI reported, citing the revised guidelines sent to commercial and cooperative lenders by the central bank.
For minors aged below 10, the accounts can be opened and operated by their parents to legal guardians.
However, those aged 10 and above can be allowed to independently manage their accounts, depending on limits and terms set by the bank as part of its risk management policy. These terms must be communicated to the account holder.
When the minor turns 18, banks must obtain updated instructions and the individual's signature for operating the account.
Banks can also offer additional services such as internet banking, ATM or debit cards, and cheque books to minor account holders based on their policies and suitability for the customers.
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, the RBI added.
The central bank has asked lenders to make new or amend existing policies to align them with the revised guidelines, latest by July 1, 2025.
(With PTI inputs)
