In a significant move towards promoting financial inclusion and independence among young individuals, the Reserve Bank of India (RBI) has allowed minors aged 10 years and above to open and manage savings or term deposit accounts on their own. This directive, issued on April 21, 2025, aims to foster financial literacy and responsibility among minors ¹.
Key Highlights of the New Guidelines
- Age Eligibility: Minors above 10 years can independently open and operate savings and term deposit accounts.
- Guardian Involvement: Minors can still open accounts with the help of their natural or legal guardian, including their mother.
- Account Management: Banks will ensure that minor accounts are not overdrawn and remain in credit balance.
- Customer Due Diligence: Banks must perform customer due diligence for deposit accounts of minors and undertake ongoing due diligence ¹ ².
What This Means for Minors and Parents
- Increased Autonomy: Minors above 10 years can now take charge of their finances and manage their accounts independently.
- Financial Literacy: This move encourages young individuals to learn about financial management and responsibility.
- Banking Facilities: Banks may offer internet banking, ATM/debit cards, and cheque books to minor account holders based on their risk management policies ³ ⁴.
Implementation Timeline
Banks are required to revise their policies and align them with the revised guidelines by July 1, 2025. This will ensure a smooth transition and enable minors to take advantage of the new rules ⁵.
Benefits of Independent Account Management
- Early Financial Independence: Minors can develop essential skills for managing finances and making informed decisions.
- Encourages Savings: Independent account management can encourage minors to save and invest for their future.
- Preparation for Adulthood: This move helps minors transition smoothly into adulthood and take charge of their financial lives ².
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