Quick Summary
Opening of and operation in deposit accounts of minors
Reserve Bank of India has issued guidelines in the past to banks on opening of and operations in the deposit accounts of minors. A review of the existing guidelines has been made with a view to rationalise and harmonise the extant guidelines.
2. Based on the review, the revised instructions on opening and operation in the deposit accounts of minors are given below:
- 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 in terms of RBI’s Circular DBOD.Leg.BC.158/C.90(H)-76 dated December 29, 1976.
- 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 keeping in view their risk management policy, 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 shall take advance action, including communicating these requirements to minor account holders attaining the age of majority, to ensure fulfilment of these requirements.
- The banks are free to offer additional banking facilities like internet banking, ATM/ debit cards, cheque book facility, etc., to the minor account holders basis their risk management policy, product suitability and customer appropriateness.
- 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 the provisions of Master Direction on Know Your Customer (KYC) Direction, 2016 dated February 25, 2016, as amended from time to time.
3. The above guidelines are issued under sections 35A and 56 of the Banking Regulation Act, 1949. 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.
4. The circulars tabulated in the Annex shall stand repealed from the effective date of this circular.
Annex
List of guidelines issued on minor deposit accounts
| Sl. No. | Circular | Date | Title of the circular |
| 1 | RPCD.No.RF.DIR.BC.32/D.1-85 | January 08, 1985 | Opening of Bank Account in the Name of Minor with Mother as Guardian |
| 2 | UBD.(DC)1148/V.1-84/85 | February 22, 1985 | Opening of a Bank Account in the Name of Minor with Mother as Guardian |
| 3 | DBOD.No.Leg.BC.19/C.90(H)-89 | September 08, 1989 | Opening of Bank Accounts in the Names of Minors with Mothers as Guardians |
| 4 | DBOD.No.Leg.BC.28/C.90(H)-89 | October 06, 1989 | Opening of Bank Accounts in the Names of Minors with Mothers as Guardians |
| 5 | UBD.DC.1/V.1-89/90 | January 02, 1990 | Opening of Bank Accounts in the Names of Minors with Mothers as Guardians |
| 6 | DBOD.No.Leg.BC.108/09.07.005/2013-14 | May 06, 2014 | Opening of Bank Accounts in the Names of Minors |
| 7 | UBD.BPD.(PCB).Cir.No.61/13.01.000/2013-14 | May 12, 2014 | Opening of Bank Accounts in the Names of Minors |
| 8 | RPCD.CO.RRB.BC.No.100/03.05.33/2013-14 | May 12, 2014 | Paragraph 4.10 (Opening accounts in the name of minors with Mothers as guardians) of Annex to the circular on ‘Customer Service in Regional Rural Banks’ |
| 9 | RPCD.CO.RRB.BC.No.104/03.05.33/2013-14 | May 27, 2014 | Opening of Bank Accounts in the Names of Minors |
| 10 | RPCD.CO.RCB.BC.No.29/07.51.010/2014-15 | September 09, 2014 | Opening of Bank Accounts in the Names of Minors |
FAQ :
Minors above the age of 10 years can now open and operate savings and term deposit accounts independently.
Yes, minors can open and operate deposit accounts with their mother as guardian, as per previous RBI circulars.
Banks are permitted to offer additional facilities such as internet banking, ATM/debit cards, and cheque books to minor account holders, based on their risk management policies.
Upon reaching the age of majority, banks must obtain fresh operating instructions and specimen signatures from the account holder.
Yes, accounts of minors, whether operated independently or through a guardian, must always maintain a credit balance and cannot be overdrawn.
Banks are advised to align their policies with these new guidelines by July 01, 2025.
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