RBI Notifies Revised Guidelines for Opening and Operation of Minors’ Bank Accounts [Read Notification]
RBI issues new guidelines allowing minors above 10 years to independently operate their bank accounts, with safeguards to ensure responsible banking
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The Reserve Bank of India ( RBI ) has issued new guidelines for banks on how to open and manage bank accounts for minors (children under 18 years). According to the notification released on April 21, 2025, minors of any age can now have savings or fixed deposit accounts. These accounts can be opened and operated by their natural or legal guardians, including their mother as a...
The Reserve Bank of India ( RBI ) has issued new guidelines for banks on how to open and manage bank accounts for minors (children under 18 years). According to the notification released on April 21, 2025, minors of any age can now have savings or fixed deposit accounts. These accounts can be opened and operated by their natural or legal guardians, including their mother as a guardian.
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Minors Above 10 Years Can Operate Accounts Independently
In an important change, the RBI has allowed minors who are 10 years or older to open and operate bank accounts by themselves, if they want to. However, the maximum amount they can handle and other terms will be decided by each bank depending on their risk management policies. Banks must clearly inform minors about these limits.
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Rules When Minor Turns 18
When the minor becomes an adult (18 years old), banks must:
- Get fresh signatures and new operating instructions from the account holder.
- If the account was being operated by a guardian earlier, the account balance must be confirmed with the now adult account holder.
Banks are required to inform minors in advance about these steps to avoid any issues later.
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No Overdrafts Allowed in Minor Accounts
The RBI has made it clear that minor accounts cannot be overdrawn. This means these accounts should always have a positive balance and should not go into negative.
Banking Facilities Allowed for Minors
Banks can also offer additional services like:
- Internet banking
- ATM/ debit cards
- Cheque books
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These will be given only if the bank finds it suitable based on their policies and the customer's needs.
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Banks Must Follow KYC Rules
The RBI has said that banks must follow the Know Your Customer (KYC) rules when opening these accounts. Banks also need to keep checking the accounts from time to time as per these KYC rules.
Deadline for Banks
All banks have been asked to update their policies and follow these new guidelines by July 1, 2025. Until then, banks can continue with their current policies.
Cash Transactions Can Lead to Fines! Are you at risk? - Click Here
Old Circulars Cancelled
The RBI has also cancelled several old circulars related to minor accounts to avoid confusion. These included circulars dating back to 1985.
To Read the full text of the Order CLICK HERE
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