RBI’s New Rule: Kids Aged 10+ Can Now Open & Operate Bank Accounts on Their Own — Full Guidelines Inside
New RBI Rule The Reserve Bank of India (RBI) has introduced a new rule that allows children aged 10 years and above to open and manage bank accounts independently. This update simplifies how banks handle accounts for minors, making the process more flexible and transparent.
These changes will come into effect from July 1, 2025, and all banks are required to update their internal policies accordingly.
What’s New in RBI’s Guidelines for Minor Bank Accounts?
✅ 1. Any Minor Can Open an Account Through a Guardian
-
Children of any age can still open a savings or term deposit account through their natural or legal guardian.
-
As per RBI’s older circular, even the mother alone can act as the guardian.
✅ 2. Kids Aged 10 and Above Can Operate Accounts on Their Own
-
Children who are 10 years or older can now independently open and manage their own accounts — without needing a guardian’s help.
-
However, banks will set their own limits and conditions, depending on their risk policies.
-
All terms must be clearly explained to the minor before account activation.
✅ 3. What Happens When a Minor Turns 18?
-
Once the account holder turns 18, they must provide new operating instructions and signature.
-
If the account was earlier managed by a guardian, the account balance must be verified.
-
Banks should initiate this process in advance for a smooth transition to adult ownership.
✅ 4. Extra Services May Be Offered
Banks can also offer minors:
-
ATM/debit cards
-
Internet banking
-
Cheque books
These services will be given only after checking the bank’s risk rules and whether the product is suitable for the child.
✅ 5. No Overdraft – Credit-Only Accounts
-
Whether the account is handled by the child or guardian, no overdraft is allowed.
-
The account must always have a credit balance.
✅ 6. KYC Is Still Mandatory
-
Banks must follow proper KYC (Know Your Customer) guidelines when opening minor accounts.
-
Regular checks and customer verification are required as per RBI’s rules.
When Will This Be Implemented?
-
The new rules will apply from July 1, 2025.
-
Until then, banks will continue with the existing policies.
Final Takeaway
This is a major step by the RBI to promote financial awareness among children. Kids can now learn how to save, manage money, and build financial discipline early in life — all while ensuring safety and compliance through proper checks by the banks.
