The Reserve Bank of India (RBI) on Monday allowed banks to open and operate children over 10 years of age independently, open savings/fixed deposit accounts. In this context, the central bank has issued revised instructions regarding opening and operation of the deposit accounts of minors.
In a circular issued to commercial banks and cooperative banks, the Reserve Bank said that minors of any age may be allowed to open and operate saving and fixed deposits through their natural or legal parents. They can also be allowed to open such accounts by making their mother a guardian.
According to the instructions issued by the apex bank, minors aged minimum ten years or older can be allowed to open and operate independently of savings/fixed deposits as per their wish. In this, banks can fix funds and conditions keeping in mind their risk management policy. Whatever terms and conditions will be fixed in this regard, the account holder will be informed about it.
These facilities will be available
In addition, when being an adult, new operational instructions and sample signatures from the account holder should be placed in the record. The circular states that banks are free to provide additional facilities to minor account holders on their risk management policy, products and customers like internet banking, ATM/debit card, check book facility etc.
These rules have to be followed
Banks should ensure that the accounts of minors, whether they are independently operated or through parents, do not withdraw more funds from them and there is always money in them. RBI said that in addition, banks will conduct proper checking of customers to open deposit accounts of minors and continue it. The central bank has asked banks to prepare new policies or amend the existing policies as per the revised guidelines by 1 July 2025.
