- By Aditya Pratap Singh
- Tue, 22 Apr 2025 01:58 PM (IST)
- Source:JND
Minor Bank Account Rule: The Reserve Bank of India (RBI) has updated its regulations for opening and keeping deposit accounts for people under the age of eighteen to simplify and modernise banking services for minors. In order to guarantee a more organised and inclusive approach to microbanking, the revised standards seek to rationalise and harmonise the current laws.
In line with the RBI's previous 1976 circular, the new rules allow minors of any age to open and manage savings or term deposit accounts through their mothers or other natural or legal guardians.
Importantly, the RBI has now allowed minors who are at least 10 years old to open and manage savings or term deposit accounts on their own. The internal risk management procedures of the relevant bank, however, govern this autonomy. Young customers must be made fully aware of these provisions by banks.
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Account holders must submit new instructions and a sample signature to continue managing their accounts after they reach the age of majority (18 years). Banks are urged to confirm the current balance and guarantee a smooth transfer of account ownership if the account was previously overseen by a parent or guardian.
Depending on their internal risk assessments and the products' suitability, banks can now provide digital services like internet banking, debit/ATM cards, and chequebooks to minor account holders, thanks to the updated framework.
With these adjustments, the RBI hopes to promote youth financial inclusion and literacy while maintaining strong protections through responsible risk management techniques.
