NEW DELHI: The Reserve Bank of India (RBI) has released revised guidelines for the opening and operation of deposit accounts for minors, aiming to rationalise and harmonise existing rules. The revised norms, issued on Monday, reflect a more inclusive and structured approach toward minor banking.
As per the new directives, minors of any age can open and operate savings and term deposit accounts through their natural or legal guardians — including mothers — in line with RBI’s 1976 circular.
Significantly, minors aged 10 years and above are now permitted to independently open and manage their savings or term deposit accounts. This autonomy is subject to conditions set by individual banks under their internal risk management policies. Banks must clearly communicate these terms to young account holders.
Upon attaining the age of majority (18 years), account holders will be required to submit fresh instructions and signature specimens. In cases where the account was operated by a guardian, the existing balance must be verified. The RBI has instructed banks to take proactive measures to ensure a smooth transition during this process.
The updated guidelines also allow banks to extend services such as internet banking, debit/ATM cards, and cheque books to minor account holders, depending on the bank’s internal risk framework and product suitability.
However, the RBI has emphasized that minor accounts must not be overdrawn under any circumstances and must always maintain a credit balance.
Customer due diligence will continue to follow the provisions under the Master Direction on Know Your Customer (KYC), 2016, ensuring regulatory compliance and safeguarding against misuse.
Banks have been directed to align their internal policies with the revised norms by July 1, 2025.