RBI's new bank account rules for minors aged above and below 10 years: What parents should know

The Reserve Bank of India has revised the guidelines for opening and operation of bank accounts of minors or children aged below 18 years. The RBI has also advised banks to revise their existing policies as per the new guidelines by July 1, 2025. Till then, banks may continue with their currently existing policies.

However, please note that these instructions are not mandatory. Banks may or may not fully implement the instructions depending on their "risk management policy, product suitability, and customer appropriateness."

Following are the key points from the new guidelines that parents should know:

Bank account rule for minors of any age

As per RBI, banks may allow minors of any age to open and operate savings and fixed deposit accounts through their natural or legal guardian. Banks may also allow minor accounts with a mother as guardian.

Bank account rule for minors aged 10 years or above

RBI has said that banks may allow minors aged 10 years or above to operate their savings and fixed deposit accounts independently.

Banks may also fix the amount and terms and conditions for such accounts based on their risk management policy. The terms of such accounts should be fully conveyed to the accountholder.

Bank account rule after attaining majority

On attaining the age of majority or age 18, the bank will issue fresh operating instructions and obtain a specimen signature of the account holder for record. If the account is operated by the guardian, then the bank will confirm the balance.

"The banks shall take advance action, including communicating these requirements to minor account holders attaining the age of majority, to ensure fulfilment of these requirements," RBI said.

Rule for other facilities: ATM card, net banking, cheque book

RBI has said that banks are free to offer additional banking facilities like internet banking, ATM/ debit cards, cheque book facility, etc., to the minor account holders. Banks may offer these benefits based on their risk management policy, product suitability, and customer appropriateness.

However, banks have to ensure there is always credit balance in minor accounts. "The banks shall ensure that accounts of minors, whether operated independently or through a guardian, are not allowed to be overdrawn and that these always remain in credit balance," RBI said.