Minors Over 10 Years Can Operate Bank Accounts Independently
RBI has now allowed minors over 10 years of age to open and operate savings and term deposit bank accounts in India, independently.
Do you remember saving coins in a piggy bank during your childhood? Now, the Reserve Bank of India (RBI) wants children to learn real money management at an early age.
On 21 April 2025, RBI announced a new rule that allows children aged 10 years or above to open and handle their own bank accounts.
What’s New?
- Children who are 10 years or older can now open savings and deposit accounts in banks.
- They can also use services like ATM cards, cheque books, and online banking, depending on the bank’s policy.
- Banks must explain all the rules clearly to the child at the time of opening the account.
- When the child turns 18, banks must update the account and take a new signature from them.
- If the account was earlier handled by a parent or guardian, the bank must check and confirm the account balance again.
For children under 10, the rules remain the same — their accounts must be opened and managed by a parent or legal guardian.
Why Did RBI Do This?
RBI took this step to help children:
- Learn how to save and spend money wisely
- Become independent in handling money
- Understand digital banking early in life
This decision will also help in teaching financial education and responsibility from a young age — important skills in today’s world.
Is It a Good Decision?
Many people have welcomed this change:
- Parents feel happy that their children will learn useful money habits.
- Teachers and finance experts say this will help kids become responsible.
- It also gives equal rights to mothers for opening accounts for their children — a big positive step!
From When Will This Start?
Banks have time till 1 July 2025 to update their systems. Till then, the old rules will continue.
