Once the account holder turns 18, the account must be updated with the individual's signature and other necessary details.

RBI Allows Children Aged 10 and Above to Open and Operate Bank Accounts Independently, latest news:

In a major decision, the Reserve Bank of India (RBI) has announced that children aged 10 years and above can now open and operate their own bank accounts independently, including savings and fixed deposit accounts.

In a circular issued on April 21, the RBI stated that minors aged 10 or above can open bank accounts and manage them on their own, without the need for a guardian. However, this is subject to the condition that the account terms align with the bank’s risk management policies. The move aims to promote financial literacy among children from an early age.

The RBI has instructed banks to implement these guidelines by July 1.

Additionally, banks may offer services like internet banking, ATM or debit cards, and chequebooks to such minors, depending on what is deemed appropriate for them.

A key requirement is that these accounts must always maintain a positive balance—that is, the balance should never fall below zero, regardless of whether the account is managed independently by the child or by a guardian.

For children younger than 10, bank accounts can still be opened, but they must be operated by a parent or legal guardian. The RBI also confirmed that mothers are eligible to act as guardians.

Once the account holder turns 18, the account must be updated with the individual's signature and other necessary details to reflect their status as a legal adult.

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