RBI’s New Rule: The Reserve Bank of India (RBI) on Monday announced a major change in the rules for opening and operating a bank account for minors.
Under the new guidelines, minors aged 10 years or older will now be able to open and operate the fixed deposits independently and operate them.
In addition, a minor of any age can open such accounts through their natural or legal guardian, which can also include their mother.
This said RBI continues in circular
In a circular issued to commercial and cooperative banks, RBI said that banks would have to update their policies as per these revised guidelines by 1 July 2025.
This discount given to banks
Banks have been given freedom to fix funds and conditions for minors’ accounts based on their risk management policy. Clear information of these conditions will be given to the account holder.
Under the new rules, when minors become adults, banks will have to register their new operations instructions and sample signatures. Banks also have to ensure that the minimum amount is always maintained in the accounts of minors and there is no more withdrawal from them.
The RBI has allowed banks to provide additional facilities to minor account holders based on their risk management policy and products. These may include services like Internet banking, ATM/debit card, and check books. This step is considered important towards promoting financial awareness and freedom among minors.
