Current · Source: Reserve Bank of India · RBI/2013-14/581 · issued 06 May 2014 · ~2 min read
Quick answerRBI now allows minors of any age to open savings/fixed/recurring deposit accounts through a guardian. Minors above 10 years may be allowed to open and operate savings bank accounts independently, if they so desire, subject to risk management limits. Banks may also offer additional facilities like ATM/debit cards, ensuring accounts stay in credit.
The rule, in the simplest words
Minors of any age can open savings/fixed/recurring deposit accounts with a guardian (parent or legally appointed person).
Minors above 10 years old may open and operate savings accounts on their own, if the bank allows, with limits on age and amount.
Banks can give extra services like ATM/debit cards, internet banking, and cheque books to minor accounts, but the account must never go negative (overdrawn).
When the minor turns 18 (becomes an adult), they must give new signature and confirm the balance in the account.
How it plays out — a real example
A payments & clearing officer in Indore is opening a savings account for a 12-year-old girl whose father is the guardian. The officer explains that since the girl is over 10, she can operate the account herself, but the bank sets a daily withdrawal limit of ₹2,000 and ensures the account always stays in credit. The officer also issues a debit card with a note that the account cannot be overdrawn.
What changed
Earlier, only mothers could act as guardians for minors' accounts (for fixed, savings, and recurring deposits); now any natural or legally appointed guardian is allowed. Minors above 10 years may be allowed to open and operate savings bank accounts independently, if they so desire, at bank's discretion, with age and amount limits. Banks can now offer internet banking, ATM/debit cards, and cheque books for minor accounts, provided accounts are never overdrawn.
What it means for you
This circular simplifies and standardizes minor account opening across banks, promoting financial inclusion. Banks must update their KYC and risk management policies to set appropriate age and transaction limits for independent minor accounts. Offering additional facilities like debit cards to minors can boost customer engagement but requires robust monitoring to prevent overdrafts.
What you must do
Update account opening forms and procedures to accept any natural or legally appointed guardian for minors of any age.
Define internal age and transaction limits for minors above 10 years who wish to operate savings accounts independently.
Decide on minimum documentation requirements for minor accounts as per your bank's risk management framework.
Ensure systems are in place to prevent overdrafts in minor accounts and to obtain fresh signatures upon the minor attaining majority.
Review and possibly extend additional banking facilities (internet banking, ATM/debit cards, cheque books) to minor accounts with appropriate safeguards.
Who it affects
All scheduled commercial banks (excluding RRBs), Minors and their guardians, Bank operations and compliance teams, Branch managers handling account opening
❓ Common questions
Can a minor below 10 years open a bank account independently?
The circular does not explicitly address minors below 10 years opening accounts independently. It states that a minor of any age can open an account through a guardian, and only minors above 10 years may be allowed to open and operate savings accounts independently, if they so desire. Therefore, it is implied that minors below 10 years cannot open accounts independently.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/581
DBOD.No.Leg.BC.108/09.07.005/2013-14
May 6, 2014
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir/Madam,
Opening of Bank Accounts in the Names of Minors
Please refer to our circular DBOD.No.Leg.BC.158/C.90(H)-76 dated December 29, 1976 wherein banks were advised to allow minors’ accounts (fixed and savings deposit accounts) with mothers as guardians to be opened subject to safeguards in allowing operations in such accounts by ensuring that the minors’ accounts opened with guardian are not allowed to be overdrawn and that these always remain in credit. Also, please refer to our circular DBOD.No.Leg.BC.19/C.90(H)-89 dated September 8, 1989 extending the facility, of allowing opening of minors’ account with mothers as guardian, to Recurring Deposits.
2. Further, with a view to promote the objective of financial inclusion and also to bring uniformity among banks in opening and operating minors’ accounts, banks are advised as under:
A savings /fixed / recurring bank deposit account can be opened by a minor of any age through his/her natural or legally appointed guardian.
Minors above the age of 10 years may be allowed to open and operate savings bank accounts independently, if they so desire. Banks may, however, keeping in view their risk management systems, fix limits in terms of age and amount up to which minors may be allowed to operate the deposit accounts independently. They can also decide, in their own discretion, as to what minimum documents are required for opening of accounts by minors.
On attaining majority, the erstwhile minor should confirm the balance in his/her account and if the account is operated by the natural guardian / legal guardian, fresh operating instructions and specimen signature of erstwhile minor should be obtained and kept on record for all operational purposes.
3. Banks are free to offer additional banking facilities like internet banking, ATM/ debit card, cheque book facility etc., subject to the safeguards that minor accounts are not allowed to be overdrawn and that these always remain in credit.
Yours faithfully,
(Rajesh Verma)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/581 · issued 06 May 2014. The plain-English explanation above is BankPulse’s own independent summary.
Update account opening forms and procedures to accept any natural or legally appointed guardian for minors of any age.
💻 IT / Systems
Ensure systems are in place to prevent overdrafts in minor accounts and to obtain fresh signatures upon the minor attaining majority.
📜 Compliance
Define internal age and transaction limits for minors above 10 years who wish to operate savings accounts independently.
Decide on minimum documentation requirements for minor accounts as per your bank's risk management framework.
Review and possibly extend additional banking facilities (internet banking, ATM/debit cards, cheque books) to minor accounts with appropriate safeguards.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Branch Manager at a bank this circular applies to (All scheduled commercial banks (excluding RRBs), Minors and their guardians, Bank operations and compliance teams, Branch managers handling account opening), your first concrete step on “Minors' Bank Account Opening Norms Relaxed” is: “Update account opening forms and procedures to accept any natural or legally appointed guardian for minors of any age.” (RBI issued this 06 May 2014).
Circular: RBI/2013-14/581 -- Minors' Bank Account Opening Norms Relaxed
Issued: 06 May 2014
Action required: Update account opening forms and procedures to accept any natural or legally appointed guardian for minors of any age.
Action required: Define internal age and transaction limits for minors above 10 years who wish to operate savings accounts independently.
Action required: Decide on minimum documentation requirements for minor accounts as per your bank's risk management framework.
Action required: Ensure systems are in place to prevent overdrafts in minor accounts and to obtain fresh signatures upon the minor attaining majority.
Action required: Review and possibly extend additional banking facilities (internet banking, ATM/debit cards, cheque books) to minor accounts with appropriate safeguards.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8866&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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