In a groundbreaking move, the Reserve Bank of India (RBI) has announced new rules permitting minors aged 10 and above to open and independently operate savings and term deposit accounts.

This update applies to all commercial and cooperative banks, including urban, state, and district central cooperative banks. Previously, minors could only operate accounts with the help of a guardian.

The new guidelines give banks flexibility to set rules based on their own risk management policies, including limits on account balances and terms.

Minors can also be offered additional services such as internet banking, ATM/debit cards, and chequebooks, depending on the bank’s risk policies. However, banks are prohibited from allowing overdrafts in minor accounts, ensuring the balance remains positive at all times.

Banks must revise their internal policies to comply with the new guidelines by July 2025, providing a more accessible and independent banking experience for young account holders.