The Reserve Bank of India (RBI) is now allowing minors aged 10 years and above to open and operate savings and term deposit accounts independently. 

This new directive, issued on April 21, is designed to foster greater financial inclusion among younger individuals. Issued on April 21, the new guidelines aim to boost financial inclusion. Banks must follow these guidelines by July 1, 2025, while making sure to check and monitor accounts properly.

Under the new rules, minors above 10 years old will be permitted to manage their accounts without the need for a guardian, provided the account terms align with the bank’s risk management policies.

Minors will still be able to open accounts through their legal or natural guardians, including their mothers. For minors reaching the age of majority, banks are required to update the operating instructions and specimen signatures in the account records.

Banks can also offer additional services like internet banking, debit cards, or cheque books, based on what’s suitable for the customer and in line with their risk policies. Regardless of whether the account is managed independently or by a guardian, it must always remain in a positive balance (balance never falls below zero).

Before the recent change, the RBI allowed minors to open savings accounts, but they needed to do so through a guardian, such as a parent or legal guardian. The guardian would operate the account on the minor’s behalf. Minors could not independently manage their accounts unless they were of a certain age (typically 18 years) to reach the age of majority. Accounts opened by minors were generally subject to the terms set by the guardian, and other banking facilities like debit cards or internet banking were usually not available to minors.