RBI: Big decision of RBI, 10 year old children will now be able to run their own bank account

New Delhi| The Reserve Bank of India (RBI) allowed banks to freely open and operate savings/fixed deposit accounts for children above 10 years of age. In this context, the Central Bank has issued revised instructions on opening and operating deposit accounts of minors.

Minors of any age can be allowed to open and operate savings and fixed deposit accounts through their natural or legal guardian, the Reserve Bank said in a circular issued to commercial banks and co-operative banks. They may also be allowed to open such accounts by having their mother as guardian.

Minors below the age limit of at least ten years and above can be allowed to open and operate savings/fixed deposit accounts freely at their will, the instructions issued by the apex bank said. In this, banks can decide the amount and conditions keeping in mind their risk management policy. The account holder will be informed about whatever terms and conditions are set in this regard.

These facilities will be available
In addition, upon reaching adulthood, the account holder’s new operating instructions and sample signature must be obtained and placed on record. Banks are free to provide additional facilities like internet banking, ATM/debit cards, check book facility etc. to minor account holders based on their risk management policy, products and customers, the circular said.

These rules will have to be followed
Banks must ensure that minors’ accounts, whether operated independently or through a guardian, are not overdrawn and always contain amounts. RBI said that apart from this, banks will conduct proper investigation of the customer for opening deposit accounts of minors and will continue the same. The central bank has asked banks to formulate new policies or amend existing policies in line with the revised guidelines by July 1, 2025.