Overview

• The Reserve Bank of India (RBI) has issued updated guidelines enabling minors aged 10 and above to independently open and operate savings and term deposit accounts.
• Banks are required to revise internal policies by July 1, 2025, to comply with these directives, which also permit minors to access services like internet banking, debit cards, and cheque books based on bank-specific risk policies.
• Minors of any age can still open accounts through their natural or legal guardians, including mothers, under full Know Your Customer (KYC) compliance.
• Accounts held by minors, whether operated independently or by guardians, must always maintain a positive balance and cannot be overdrawn.
• Upon reaching adulthood, account holders must update operating instructions and specimen signatures to ensure a smooth transition to independent account management.