The RBI, by way of its Circular dated April 21, 2025, has issued revised guidelines on the opening and operation of deposit accounts for minors (‘Guidelines’) by inter alia all commercial banks and co-operative banks (collectively, ‘Banks’). Banks are required to put in place policies/ revise existing policies aligned with the Guidelines before July 1, 2025.

Key features of the revised Guidelines include the following:

i.    Opening of Accounts by Minors: Minors of any age may open and operate savings and term deposit accounts through their natural or legal guardian. Additionally, minors above the age of 10 years, subject to terms fixed by Banks, may open and operate such accounts independently;

ii.   Minors Attaining Majority: Upon the minor account holder attaining majority, Banks are required to obtain fresh operating instructions and specimen signatures from the account holder. Banks are required to proactively communicate these requirements to such minor account holders approaching majority; and

iii.  Other Requirements: Banks are required to ensure that accounts of minors, whether operated independently or through a guardian, must not be overdrawn. Further, Banks are required to conduct customer due diligence at account opening and on an ongoing basis.