Here is some important financial news, especially if you are a parent or a teenager, the Reserve Bank of India (RBI) has given the green light for children above the age of 10 to open and manage their own bank accounts in India.
Yes, you heard that right. From now on, minors over 10 years old can open savings accounts and even term deposit accounts all by themselves, without needing a guardian to handle it for them.
This move was officially announced by the RBI on 21 April. The idea is to give young people a head start in understanding how to manage their own money, while still keeping everything under proper checks and limits.
What Does This Mean for Children and Parents?
If your child is above 10 and wants to open a bank account, they can do that independently — but only up to a certain limit. That limit, along with other conditions, will be decided by each bank depending on its risk policies. The banks will also explain all the terms clearly to the minor at the time of opening the account.
Once the minor turns 18, the bank will need a fresh set of operating instructions and updated signatures to shift the account to an adult format.
More Banking Features Possible
Banks have also been allowed to offer extra services like debit cards, ATM access, internet banking, and even chequebooks for minor accounts — but again, this will depend on the bank’s internal policy and whether the child is ready to handle those features responsibly.
What About Children Under 10?
Don’t worry — younger children can still have bank accounts too. But in their case, a parent or legal guardian will need to manage it for them. The RBI has also said that the mother can be the primary guardian for these accounts.
One key point here — these accounts, whether opened by kids above 10 or younger ones through a guardian, are not allowed to be overdrawn. That means the account must always have some money in it. No minus balance allowed.
Due Diligence is a Must
Banks have been told to be careful with these accounts. They’ll need to verify all documents properly and keep doing regular checks on these accounts. The RBI wants everything to be safe and well-managed.
Banks have until 1 July 2025 to update or create new policies based on these revised guidelines.
