According to the revised guidelines issued on April 21, 2025, banks can now empower minors to manage their own accounts – within the boundaries defined by the risk policy of each bank – how the banking system connects with young customers, mark a large innings about how the banking system connects with young customers.
Major Highlights of new guidelines:
Minor accounts at any age: Banks may allow minors of any age to open and operate and operate a term deposit account through natural or legal guardians. The RBI has confirmed the provision to allow mothers to act as parents for such accounts for such accounts, according to a long -lasting circular since 1976.
Independent operations from the age of 10 years:
Depending on their internal risk management policies above 10 years, minors can open and operate their accounts independently under the limits and conditions defined by individual banks. These conditions should be clearly informed to the account holder.
Majority infection: On receiving the majority (18 years), banks must collect new signature and operational instructions from the account holder. If the account was managed by a guardian, the remaining amount should be confirmed. Banks are instructed to ensure a smooth transition.
Access to modern banking equipment: Under their risk policies, banks are allowed to provide additional facilities like Internet banking, ATM/debit cards and to check books to modest account holders.
No overdraft is allowed: Whether independently operated or through a guardian, minor accounts should remain in credits and cannot be overdron.
KYC compliance mandatory: Banks should demonstrate diligence due to customer during opening a minor account and continue compliance under the Master direction of RBI on KYC, 2016.
These guidelines will be applicable to all commercial banks, urban cooperative banks, state cooperative banks and district central cooperative banks. RBI said that institutions need to revise their policies by July 1, 2025.
(edited by : Akanka Upadhyay,
