In a major update, the Reserve Bank of India (RBI) has allowed minors aged 10 years and above to independently open and manage their own bank accounts without the need for a guardian. This rule is applicable to all commercial and cooperative banks, including primary urban cooperative banks, state cooperative banks, and district central cooperative banks.
Key Points of the New Guidelines:
• Minors aged 10 or above can open and operate savings or term deposit accounts on their own.
• Banks can set limits and terms based on their internal risk policies.
• Guardians can still open accounts for minors of any age, but operation by the minor is permitted only after age 10.
• Upon turning 18, the account holder’s details must be updated, including new signatures and balance confirmation.
• Banks may offer services like internet banking, debit cards, and cheque books after evaluating risk.
• Overdrafts and loans will not be allowed on these accounts.
• All KYC (Know Your Customer) norms must be strictly followed.
Why It Matters:
This move is aimed at encouraging financial literacy and giving young individuals early banking experience. All banks are required to implement these changes by July 1, 2025.
