The Reserve Bank of India on Tuesday said minors of any age can open and operate savings and term deposit accounts through his/her natural or legal guardian.

RBI has issued comprehensive norms for opening of and operations in the deposit accounts of minors applicable to regulated banking entities, including commercial and cooperative banks.

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“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,” the statement by RBI said.

The central bank conducted a review to rationalise and harmonise the extant guidelines.

Minors may also be allowed to open such accounts with their mother as guardian, RBI said in communication. The revised norms come into effect from April 21, 2025.

The banks shall perform customer due diligence for opening of deposit accounts of minors and undertake ongoing due diligence, in line with regulatory norms.

RBI further said the banks should 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.

On attaining the age of majority of account holders, banks should obtain fresh operating instructions and specimen signatures to be kept on record. Moreover, if the account is operated by the guardian, the balance should be 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, it added.