The Bank of the Reserve of India (RBI) has issued new guidelines that allow minors to open and operate savings and term deposit accounts, either independently or with a tutor.
“Catch Deposits Young” seems to be the RBI message to the banks, based on their last circular with respect to the opening and operation of deposit accounts for minors.
This circular, which establishes that minors of anyone can open and operate savings and deposit accounts through their natural or legal guardian, comes in the context of the growth of deposits behind Cedit’s growth in the banking system in recent years.
You can also allow minors to open such accounts with their mother as The Guardian.
The Central Bank mentioned that children under 10 or more can be able to open and operate savings/term deposit accounts independently if they wish, and these terms should be clearly transmitted to the account holder.
The opening and operation of the deposit accounts mentioned above will be subject to limits and terms established by the banks based on their risk management policies.
The RBI said that banks are free to offer additional banking facilities, such as Internet banking, ATMs/Debit cards and checkbook facilities, minor accounts holders, depending on their risk management policies, product suitability and clustomer apprentices.
Banks must ensure that minors accounts are independently operated or through a tutor, they are not allowed to overcome and always remain in credit balance.
Upon reaching the age of majority, a fresh operation firm and a sample firm of the account holder must be obtained and maintained. In addition, if the account is operated by a tutor, the balance must be confirmed.
Banks must take early measures, including communication of these requirements to minor account holders that reach the age of majority, to ensure that thesis requirements are.
The RBI has advised banks to make new or amend policies to align them with the latest guidelines before July 1, 2025. Meanwhile, existing policies can continually.
Posted on April 21, 2025