RBI Permits Minors above 10 to Operate Bank Accounts Independently

 This move, aimed at promoting early financial literacy, will empower minors to manage money responsibly, within a safe and supervised banking environment. However, the RBI has set clear operational limits and conditions based on the bank’s risk management policy, and banks are required to ensure that minor accounts do not go into overdraft and maintain a credit balance at all times.

Minors of any age can open savings or term deposit accounts through a parent or legal guardian. Minors above 10 years may independently operate such accounts if desired and permitted by the bank’s policy... Banks can allow independent operations up to a limit set by their internal risk management policies. All such terms must be clearly communicated to the account holder. Upon turning 18, the bank must obtain fresh operating instructions and specimen signatures from the account holder... No overdraft is allowed on minor accounts. These accounts must always remain in credit regardless of how they are operated... All banks must introduce new or amend existing policies to comply with these revised norms by July 1, 2025.