Minors can also be allowed to open a bank account by keeping their mother as guardians.
Reserve Bank of India (RBI) has given a special gift to minors above 10 years of age. The RBI on Monday allowed these minors to open a savings/FD account independently. According to the news of PTI, the central bank has issued revised instructions on opening and operation of the deposit accounts of minors. The circular issued to banks stated that minors of any age can be allowed to open and operate savings and fixed deposits through their natural or legal guardians.
It was also said in the circular
According to the news, the new amendment states that minors can also be allowed to open a bank account by keeping their mother as guardians. The circular states that minors under 10 years of age, keeping in mind their risk management policy by banks, can be allowed to open and operate and operate independently, savings/fixed deposit accounts, if they want to do so, and such conditions will be duly told to the account holder. Also, when the minor is an adult, new operating instructions and sample signature of the account holder should be obtained and they should be kept in records.
There is no more withdrawal, banks will take care of it
The circular states that banks are free to provide additional banking facilities like Internet banking, ATM/debit card, check book facility etc. to minor account holders on the basis of their risk management policy, product suitability and customer suitability. Banks must ensure that the accounts of minors, whether they are independently operated or through guardian, do not have more withdrawal from them and they are always in credit balance.
Banks will conduct a proper investigation of the customer to open deposit accounts of minors and will continuously conduct proper investigation. RBI has asked banks to make new policies or amend existing policies as per the revised guidelines by July 1, 2025.
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