Created by Meta AI
RBI’s Big Decision: Now children above 10 can operate their own bank accounts
By Zinnia Balli
New Delhi, April 22, 2025: If your child is older than 10 and has some understanding of money, they can now open and manage their bank account.
The Reserve Bank of India (RBI) has made a major decision allowing banks to let children above 10 years of age open and operate savings and fixed deposit accounts on their own.This move will help children become more financially aware and learn the value of money early.
Freedom of Banking for Kids Above 10
In a circular issued on April 21, RBI said that minors aged 10 years or above can be allowed to open and run savings or fixed deposit accounts by themselves.However, banks will decide the conditions and limits based on their risk policy, and all terms must be clearly shared with the account holder.
Banking Services With Some Conditions
RBI also said that banks may provide services like internet banking, ATM or debit cards, and chequebooks to such children, but only if they fit the bank’s risk rules and the child’s needs and understanding.
Not every child needs to get all these services – the bank will decide what is suitable.No Overdraft Allowed in Minor Accounts
Whether the account is operated by the child or by a parent, RBI has clearly said that minor accounts cannot go into overdraft.
That means the account balance should never go below zero. Banks must make sure that there is always some money in the account.
What About Children Below 10?
Children younger than 10 can also have a bank account, but it must be opened and managed by a parent or legal guardian. RBI has confirmed that mothers can act as guardians and open accounts for their children.
Once the child turns 18 (becomes a legal adult), new instructions, signatures, and updated details will be needed to continue the account.
Banks Must Update Policies by July 2025
RBI has asked all banks to update their existing rules or create new policies by July 1, 2025, to implement these changes. Banks must also do proper verification (due diligence) when opening a minor’s account and continue to monitor it.
A Relief for Parents Too
Earlier, minor accounts could only be managed through guardians. Children could not operate them on their own. Now, with this RBI decision, children will get a chance to learn financial discipline and understand digital banking from an early age.
This will not only help kids move towards financial independence but will also be a relief for parents, knowing that their children are learning how to save and plan money wisely.If you're thinking of opening an account for your child, make sure to contact your bank and understand all the rules.