RBI Updates Guidelines for Opening and Operating Deposit Accounts of Minors

The Reserve Bank of India (“RBI”) has issued revised guidelines titled ‘Opening and Operation of Deposit Accounts of Minors’ (“Revised Guidelines”), effective from April 1, 2025 (available here). Key highlights of the Revised Guidelines include:

• Account Opening by Guardians: Minors of any age may open and operate savings or term deposit accounts through a natural or legal guardian. The mother is explicitly recognised as a competent guardian for this purpose.

  
  

• Independent Operation by Minors Aged 10 and Above: Minors aged 10 years and above are permitted to independently open and operate savings and term deposit accounts, subject to the concerned bank’s risk management policies. All applicable terms and conditions must be clearly communicated to the minor.

  
  

• Attaining Majority: Upon attaining majority, the account holder must provide fresh operational instructions and specimen signature. In cases where the account was operated by a guardian, banks are also required to confirm the balance with the now-major account holder.

  
  

• Additional Facilities: Banks may extend facilities such as debit cards, cheque books, and internet banking to minor account holders. However, such accounts must consistently maintain a credit balance, and all customer due diligence must be carried out in line with the Know Your Customer (KYC) Master Directions.

  
  

These Revised Guidelines supersede all previous RBI circulars on the subject with effect from the stated date.