RBI Guidelines on Opening and Operating Deposit Accounts for Minors:

RBI Guidelines on Opening and Operating Deposit Accounts for Minors The Reserve Bank of India (RBI) has reviewed and revised the existing guidelines regarding the opening and operation of a deposit account for minors. These revised guidelines aim to make the current process simpler and smoother. Let us take a look at these issued guidelines

Opening a Minor Account

Minors of any age can open and operate savings and term deposit bank accounts through their natural or legal guardian. They can also open such an account with their mother as a legal guardian as per an older RBI guideline (DBOD.Leg.BC.158/C.90(H)-76 dated December 29, 1976).

Bank Accounts for Minors Above the Age of 10

Minors aged 10 or above may open and operate savings or term deposit accounts on their own, subject to the bank's risk management policy. The terms and conditions should be clearly communicated to the account holder.

At the age of Majority

When the minor reaches the age of majority, the bank will require new instructions, specimen signatures, and confirmation of the account balance (if operated by a guardian).

Additional Bank Facilities

Banks are allowed to provide additional services like internet banking, ATM/debit cards, and cheque books to minor account holders, depending on the bank's policies and risk management.

Account Maintenance

Minor accounts should not be overdrawn and should maintain a positive balance.

KYC Requirements

Banks must conduct due diligence when opening minor accounts and continue due diligence according to the RBI’s KYC guidelines. Banks must update their policies to align with these new guidelines by July 01, 2025. Until then, current policies will continue. Refer to the official notification for more information.