RBI Empowers Young Savers: Minors Above 10 Can Now Operate Bank Accounts Independently

In a landmark move, the Reserve Bank of India (RBI) has permitted minors aged 10 years and above to independently open and operate savings and term deposit accounts. This decision aims to enhance financial literacy and early banking exposure among young individuals while ensuring adequate safeguards.

Banks have been granted the flexibility to set age-based and amount-based conditions for minor-operated accounts, aligning with their risk management policies. Additionally, minors can now open accounts with their mother as a guardian, expanding accessibility. While banks may offer services like internet banking, debit cards, and cheque books, they must ensure that these accounts remain in credit balance and are not overdrawn.

Upon reaching adulthood, account holders must provide fresh operating instructions and specimen signatures to continue managing their accounts. The RBI has directed banks to update their policies in accordance with these revised guidelines by July 1, 2025. This initiative is expected to foster financial independence and responsible money management among India’s youth.