Current · Source: Reserve Bank of India · RBI/2013-14/610 · issued 27 May 2014 · ~2 min read
Quick answerRBI allows RRBs to open savings/fixed/recurring deposit accounts for minors of any age through guardians. Minors aged 10+ can independently operate savings accounts if banks set age/amount limits. Additional facilities like ATM/debit cards are permitted, but accounts must never be overdrawn.
The rule, in the simplest words
Any guardian (not just mother) can open savings/fixed/recurring deposit accounts for a minor of any age.
Minors aged 10+ can open and run their own savings account, but the bank sets limits on age and amount.
Banks can give ATM/debit cards, cheque books, and internet banking to minor accounts, but the account must never go negative (overdrawn).
When the minor becomes an adult, the bank must get new instructions and signature from them to keep using the account.
How it plays out — a real example
A deposits officer in a rural RRB branch in Bihar meets a father who wants to open a savings account for his 8-year-old daughter. The officer explains that any guardian can now open the account, not just the mother, and sets up the account with the father as guardian. He also notes that when the girl turns 10, she can operate the account herself, but the bank will set a daily withdrawal limit to keep the account safe from going negative.
What changed
Earlier, RRBs could only open minors' accounts with mothers as guardians. Now, any natural or legally appointed guardian can open accounts for minors of any age. Minors above 10 years may independently operate savings accounts, and banks can decide documentation and limits based on risk management.
What it means for you
This circular expands financial inclusion by simplifying minor account opening for RRBs. Banks can now offer ATM/debit cards, cheque books, and internet banking to minor accounts, subject to strict no-overdraft rules. RRBs must update their KYC and risk policies to accommodate independent minor operations and guardian-managed accounts.
What you must do
Update internal policies to allow minor accounts through any natural or legal guardian, not just mothers.
Set clear age and amount limits for minors aged 10+ to independently operate savings accounts.
Define minimum documentation requirements for minor accounts as per your risk management framework.
Ensure minor accounts (including those with additional facilities) never go into debit; monitor regularly.
On minor attaining majority, obtain fresh operating instructions and specimen signature for continued operations.
Who it affects
Regional Rural Banks (RRBs), Minors and their guardians, RRB branch operations and compliance teams
❓ Common questions
Can a minor below 10 years open a bank account in an RRB?
Yes, a minor of any age can open a savings/fixed/recurring deposit account through a natural or legally appointed guardian.
What additional banking facilities can RRBs offer to minor accounts?
RRBs may offer ATM/debit cards, cheque book facility, and internet banking (when permitted), provided the account is never overdrawn and always remains in credit.
What happens when a minor turns 18?
The erstwhile minor must confirm the balance. If the account was operated by a guardian, fresh operating instructions and specimen signature of the now-major account holder must be obtained.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/610
RPCD.CO.RRB.BC.No.104/03.05.33/2013-14
May 27, 2014
The Chairmen,
All Regional Rural Banks
Dear Sir/Madam,
Opening of Bank Accounts in the Names of Minors
Please refer to para 4.10 of our circular RPCD.CO.RRB.BC.No.100/03.05.33/2013-14 dated May 12, 2014 wherein Regional Rural Banks were advised to allow minors’ accounts (fixed, savings and recurring deposit accounts only) 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.
2. With a view to promote the objective of financial inclusion and also to bring uniformity among banks in opening and operating minors’ accounts, Regional Rural 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. RRBs are free to offer additional banking facilities like ATM/ debit card, cheque book facility, internet banking (as and when permitted) etc., subject to the safeguards that minor accounts are not allowed to be overdrawn and that these always remain in credit.
Yours faithfully,
(A. Udgata)
Principal Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/610 · issued 27 May 2014. The plain-English explanation above is BankPulse’s own independent summary.
On minor attaining majority, obtain fresh operating instructions and specimen signature for continued operations.
📜 Compliance
Update internal policies to allow minor accounts through any natural or legal guardian, not just mothers.
Set clear age and amount limits for minors aged 10+ to independently operate savings accounts.
Define minimum documentation requirements for minor accounts as per your risk management framework.
Ensure minor accounts (including those with additional facilities) never go into debit; monitor regularly.
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 Compliance officer at a bank this circular applies to (Regional Rural Banks (RRBs), Minors and their guardians, RRB branch operations and compliance teams), your first concrete step on “RRBs: Minors' Account Opening Norms Relaxed” is: “Update internal policies to allow minor accounts through any natural or legal guardian, not just mothers.” (RBI issued this 27 May 2014).
Action required: Update internal policies to allow minor accounts through any natural or legal guardian, not just mothers.
Action required: Set clear age and amount limits for minors aged 10+ to independently operate savings accounts.
Action required: Define minimum documentation requirements for minor accounts as per your risk management framework.
Action required: Ensure minor accounts (including those with additional facilities) never go into debit; monitor regularly.
Action required: On minor attaining majority, obtain fresh operating instructions and specimen signature for continued operations.
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=8904&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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