In a significant move aimed at enhancing financial literacy and inclusion among young individuals, the Reserve Bank of India (RBI) has announced that children aged 10 years and above can now independently open and manage their own savings and term deposit accounts.
“This new directive, issued on April 21, is designed to foster greater financial inclusion among younger individuals.”
Banks have been instructed to implement the updated guidelines by July 1, 2025, while ensuring appropriate safeguards and monitoring mechanisms are in place.
As per the revised norms, minors who are 10 or older will no longer need a guardian to operate their bank accounts, provided the terms and conditions fall within the bank’s existing risk management framework.
At the same time, the option to open accounts through a parent or legal guardian—including mothers—remains available. When a minor turns 18, banks will be required to update the account’s operational instructions and verify signatures accordingly.
“Banks can also offer additional services like internet banking, debit cards, or cheque books, based on what’s suitable for the customer and in line with their risk policies. Regardless of whether the account is managed independently or by a guardian, it must always remain in a positive balance (balance never falls below zero).”
Previously, minors could only open savings accounts with a guardian’s involvement. While they could hold an account in their name, a parent or legal guardian had to operate it. Access to services like debit cards or online banking was typically restricted until the minor turned 18 and assumed full control of their finances.
This policy update marks a progressive step in encouraging young Indians to become financially aware and responsible from an early age.
