Reserve Bank of India Allows Minors Independent Accounts

The State Bank of India has issued revised guidelines permitting minors aged 10 years and above to independently open and operate savings and term deposit accounts. This move aims to enhance financial inclusion among the youth in India. Banks are given discretion to set specific terms and conditions for these accounts, aligning with their risk management policies, and must communicate these terms clearly to account holders. Additionally, banks can offer supplementary services like internet banking, ATM/debit cards, and cheque books to minor account holders. The guidelines also stipulate that all minor accounts must maintain a credit balance and not be overdrawn. Banks are required to update their internal policies to comply with these new directives by July 1, 2025. Customer due diligence will continue to be performed for all minor accounts.