The Reserve Bank on Monday (April 21, 2025) permitted banks to permit minors above the age of 10 years to open and operate financial savings/time period deposit accounts independently.
The Reserve Bank of India has issued revised directions on opening and operation within the deposit accounts of minors.
Minors of any age could also be allowed to open and operate financial savings and time period deposit accounts via his/her pure or authorized guardian, the RBI mentioned in a round addressed to business banks and cooperative banks.
They might also be allowed to open such accounts with their mom as guardian.
“Minors above such an age limit not less than 10 years and up to such amount and such terms as may be fixed by the banks keeping in view their risk management policy, may be allowed to open and operate savings/term deposit accounts independently, if they so desire, and such terms shall be duly conveyed to the account holder,” the round mentioned.
Further, on attaining the age of majority, contemporary working directions and specimen signature of the account holder must be obtained and saved on document.
“The banks are free to offer additional banking facilities like internet banking, ATM/ debit cards, cheque book facility, etc, to the minor account holders basis their risk management policy, product suitability and customer appropriateness,” the round mentioned.
The banks could have to be sure that accounts of minors, whether or not operated independently or via a guardian, aren’t allowed to be overdrawn and that these all the time stay in a credit score steadiness.
Also, the banks shall carry out buyer due diligence for opening of deposit accounts of minors and undertake ongoing due diligence, RBI added.
The RBI has requested banks to make new or amend current insurance policies to align them with the revised pointers, newest by July 1, 2025.
Published – April 21, 2025 10:51 pm IST
