On April 21, RBI announced new rules for bank accounts for minors. According to the news agency PTI report, children aged 10 years or older can now open and operate their own savings and term deposit accounts without a guardian. This can be done only if the bank’s risk management policy allows it. The
move is set to empower young individuals to understand the importance of early banking engagement. It will help the youth to manage their finances at an early age.
Here are the key points:
– Minors aged 10 or older can operate bank account without the need for a guardian’s joint signature.
– Banks can offer extra services to minor account holders like ATM/debit cards, internet banking, and cheque books.
– Accounts should always remain in credit. It cannot be overdrawn no matter who is operating the minor’s account.
– Banks have the right to set rules and limits (like how much money can be kept or used) and share them with the minor.
– Bank must verify the minor and the guardian properly before opening the account.
– Once the minor turns 18, they need to give fresh operating instructions and their signature to the bank.
– Kids under 10 can also have an account but they need to be operated by a parent or guardian.
This rules is to be applied by all regulated banks, including both commercial and cooperative banks. New rules will be effective by July 1, 2025.