On Apr. 21, IND RBI revised guide on opening of accounts of minors.
IND RBI revised Guidelines on opening of and operation in deposit accounts of minors.
Follows IND RBI May 2014 issued guidance on opening accounts for minors, #8238.
Outline of Revisions
Minors of any age may be allowed to open and operate savings and term deposit accounts through natural/legal guardian, open such accounts with mother as guardian.
Minors above the specified minimum age (not less than 10 years) may be allowed to open, operate savings/term deposit accounts independently, up to such amounts under such terms as may be determined by banks as per their risk management policies.
In this case, such terms shall be duly communicated to the account holders.
Upon attaining the age of majority, fresh operating instructions and specimen signature of the account holders shall be obtained and retained on record; where the accounts are operated by guardians, the account balance must be confirmed.
Banks shall notify minor account holders attaining the age of majority of requirements, ensure that minor accounts are not overdrawn, and maintain credit balance.
Conduct customer due diligence (DD) for opening of deposit accounts of minors, carry out ongoing DD per Master direction on know your customer direction 2016, #171284.
Effectiveness
Advised banks to make new and/or amend existing policies to align them with these guidelines, latest by Jul. 1, 2025; circulars in annex will be repealed on Jul. 1, 2025.
Regulators
IND RBI
Entity Types
Bank; CNSM
Reference
Nt RBI/2025-26/26, DOR.MCS.REC.17/01.01.003/2025-26, 4/21/2025; MDir RBI/DBR/2015-16/18, DBR.AML.BC.No.81/14.01.001/2015-16, 2/25/2016;
Functions
Compliance; Financial; Legal; Operations; Product Administration; Record Retention; Risk; Suitability
