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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Opening of and operation in deposit accounts of minors

22-Apr-2025 | RBI/2025-26/26 DOR.MCS.REC.17/01.01.003/2025-26

RBI has issued the notification regarding Opening of and operation in deposit accounts of minors which is effective from April 21, 2025.

Key Highlights are as follows:
1.Minors of any age may be allowed to open and operate savings and term deposit accounts through his/ her natural or legal guardian and it is allowed to open such account with mother as guardian in accordance with RBI's Circular DBOD.Leg.BC.158/C.90(H).76.
2. Minors above an age limit not less than 10 years and upto such amount and such terms as may be fixed by the banks as per their risk management policy, may be allowed to open and operate savings/ term deposit accounts independently and such terms shall be conveyed to the account holder.
3. On attaining the age of majority, fresh operating instructions and specimen signature of the account holder shall be obtained and kept on record.
4. The banks are free to offer additional banking facilities like internet banking, ATM/ debit cards, cheque book facility etc., to minor account holders.
5. The banks shall ensure that accounts of minors are not allowed to be overdrawn and always remain in credit balance.
6. The banks shall perform customer due diligence as per the provisions of Master Direction on Know Your Customer (KYC) Direction, 2016.
7. The banks are required to make new and/ or amend existing policies to align them with these guidelines, latest by July 01, 2025, meanwhile existing policies may continue.

Also, in addition to the above, the notification also specifies the list of circulars repealed, with effect from the date of this notification.

For more information, kindly refer to the attached document

Upgrade to paid version to access the Notification, Circular & Rules along with the checklist

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