Reserve Bank of India harmonises minors’ deposit account rules including self-operation from a bank-set age not below 10 and policy alignment by 1 July 2025

The Reserve Bank of India issued revised instructions to commercial banks and co-operative banks on opening and operating minors’ savings and term deposit accounts, rationalising and harmonising earlier guidance into a single framework. Minors of any age may open and operate savings and term deposits through a natural or legal guardian, including with the mother as guardian. Banks may also allow minors above a bank-set age threshold not below 10 years to open and operate such accounts independently, subject to bank-set amount limits and terms aligned to the bank’s risk management policy and communicated to the account holder. When the account holder attains majority, banks must obtain fresh operating instructions and a specimen signature, confirm the balance if the account was operated by a guardian, and take advance action to communicate these requirements. Banks may offer additional facilities such as internet banking, ATM or debit cards and cheque books based on risk management, product suitability and customer appropriateness, but must ensure minors’ accounts are not overdrawn and remain in credit, and must apply customer due diligence and ongoing due diligence under the Master Direction on Know Your Customer Direction, 2016. Banks are required to issue new or amend existing policies to align with the guidelines by 1 July 2025, with current policies continuing in the interim. The circular, issued under sections 35A and 56 of the Banking Regulation Act, 1949, repeals the listed prior circulars from its effective date.