New Delhi: The Reserve Bank of India (RBI) has introduced a significant change in banking regulations, allowing minors above the age of 10 to open and operate savings and term deposit accounts independently. The new directive, issued on April 21, 2025, aims to promote financial inclusion among younger individuals and is set to take effect by July 1, 2025.
Under the updated guidelines, minors aged 10 years and above can manage their bank accounts without requiring a guardian, provided the account terms are aligned with the bank’s risk management policies. This move is seen as a step toward empowering young people to take control of their finances at an earlier age.
While the new rules allow minors to operate accounts independently, they can still open accounts through their legal guardians, including parents. For those minors who reach the age of majority, banks are required to update account records and operating instructions accordingly.
In addition to basic account management, banks can also offer additional services like debit cards, internet banking, or even cheque books, depending on the bank’s policies and the customer’s age. However, the accounts, whether managed independently or with a guardian, must always maintain a positive balance and not fall below zero.
Prior to this change, minors could only open savings accounts under the supervision of a guardian, who managed the account on their behalf. Other services, such as internet banking or debit cards, were generally unavailable to minors under the previous regulations.
This initiative by the RBI reflects a growing focus on improving financial literacy and inclusion among young people, ensuring that they are better prepared to manage their finances as they grow. Banks are expected to fully implement these guidelines by July 1, 2025, ensuring that they adhere to proper risk management protocols while offering these services to minors.
