Friday, April 25, 2025

🏦 Key Highlights of the New RBI Guidelines: 10-Year-Old Minor Kids can now Open and Operate Bank Accounts Independently

Published on Dhan Shiksha | Financial Wisdom for Every Age

In a major move toward financial inclusion and early money management education, the Reserve Bank of India (RBI) has rolled out new guidelines that allow minors aged 10 years and above to independently operate their bank accounts. This progressive step is designed to nurture responsible banking habits among children from a young age.



Here are the key highlights you need to know:

1. ✅ Minors Above 10 Years Can Operate Bank Accounts

Under the new rules, minors who are 10 years or older can now:

  • Open savings accounts and fixed deposits independently.

  • Operate their accounts without the involvement of a guardian (subject to the bank’s discretion).

This change empowers children to take their first steps toward understanding personal finance and money management.

2. 🏦 Bank Discretion & Policy Framework

While the RBI has allowed this provision, individual banks will:

  • Decide the extent of access given to minor account holders.

  • Set limits on transactions, account balance, and services.

  • Define eligibility criteria based on their internal risk management policies.

👉 Parents are advised to check with their bank for specific terms and features offered under this new rule.

3. 💳 Debit Cards, Internet Banking & More

Banks can offer the following services to minors, based on their policy:

  • ATM/Debit Cards

  • Net Banking

  • Mobile Banking

  • Cheque Books

These tools will be provided only if the bank deems the child capable of handling such facilities responsibly.

4. 🔐 Security & Account Restrictions

To ensure responsible usage, all minor accounts:

  • Must always maintain a credit balance (no overdrafts allowed).

  • Cannot be linked to credit cards or loan products.

  • Are monitored under stricter compliance norms to safeguard young account holders.

5. 🎓 Transition to Adult Account at Age 18

Once the account holder turns 18, they must:

  • Submit new KYC documents.

  • Provide fresh specimen signatures.

  • Update operating instructions and review account terms.

This transition ensures continuity while upgrading the account to a standard adult savings account.

6. 📅 Deadline for Banks: July 1, 2025

All banks are required to update their systems and implement these guidelines by July 1, 2025. This gives financial institutions enough time to revise their products and ensure secure operations.

🧠 Dhan Shiksha Takeaway: Financial Literacy Begins Early

This RBI move is more than just a policy shift—it's a mindset change. Encouraging children to handle their own finances with guidance builds a strong foundation for:

  • Budgeting

  • Saving habits

  • Goal-oriented planning

At Dhan Shiksha, we believe financial education must start young, and this decision supports that mission beautifully.

📌 Parents, educators, and students—let’s use this opportunity to begin the financial journey early, wisely, and with confidence.  Click Below to Know more about Dhan Shiksha Guide to Kids by their Parents. 

Dhan Shiksha for Kids: A Parent’s Guide for Teaching Kids About Money 

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