RBI Introduces Progressive Banking Guidelines for Minors

The Reserve Bank of India (RBI) has unveiled updated guidelines that mark a significant shift in how minors can engage with banking services. These changes are designed to make banking more accessible and empowering for young individuals.

Key Changes in the Guidelines

Under the new directives, minors of any age can now open savings and term deposit accounts through their guardians. Notably, children aged 10 and above are granted the autonomy to operate these accounts independently, a move that underscores RBI's commitment to financial literacy and independence from a young age.

Banks are required to clearly outline the terms of account operation to these young account holders and ensure a seamless transition when they reach the age of majority. Additionally, services like internet banking and debit cards can be extended to minors, based on the bank's risk assessment.

Ensuring Safe and Responsible Banking

The RBI has laid down strict guidelines to prevent any misuse, including the prohibition of overdrafts and the necessity for accounts to always maintain a credit balance. Compliance with KYC norms is also emphasized to safeguard against fraudulent activities.

Banks have until July 1, 2025, to align their policies with these revised norms, signaling a new era of inclusive banking for minors in India.