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Opening of and operation in deposit accounts of minors

Reserve Bank of India (RBI) has revised the guidelines on opening of and operation in deposit accounts of minors.

What are the revised instructions on opening of and operation in the deposit accounts of minors?

  • Minors of any age may be allowed to open and operate savings and term deposit accounts through his / her natural or legal guardian. They may also be allowed to open such accounts with mother as guardian.
  • Minors above such an age limit not less than 10 years and up to such amount and such terms as may be fixed by the banks, may be allowed to open and operate savings / term deposit accounts independently, if they so desire, and such terms shall be duly conveyed to the account holder.
  • On attaining the age of majority, fresh operating instructions and specimen signature of the account holder shall be obtained and kept on record. Moreover, if the account is operated by the guardian, the balance shall be got confirmed. 
  • The banks are free to offer additional banking facilities like internet banking, ATM / debit cards, cheque book facility, etc., to the minor account holders.
  • The banks shall ensure that accounts of minors, whether operated independently or through a guardian, are not allowed to be overdrawn and that these always remain in credit balance.
  • The banks shall perform customer due diligence for opening of deposit accounts of minors and undertake ongoing due diligence, as per Master Direction on Know Your Customer (KYC) Direction, 2016.
  • Banks are advised to make new and / or amend existing policies to align them with these guidelines, latest by July 01, 2025. In the meanwhile, existing policies may continue.


References

Reserve Bank of India. (2025, April 21). 'Opening of and operation in deposit accounts of minors'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12835&Mode=0


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