Overview

• The Reserve Bank of India has issued new regulations allowing minors aged 10 and above to independently open and operate savings and term deposit accounts.
• Banks must define account limits and terms based on their risk management policies and communicate these clearly to account holders.
• Minors' accounts are prohibited from overdrafts and must always maintain a credit balance, whether managed independently or through a guardian.
• Upon reaching adulthood, account holders must provide fresh operating instructions and specimen signatures to continue account operations.
• Banks are required to align their policies with the revised RBI guidelines and implement necessary changes by July 1, 2025.