This is a Big Move by RBI: Kids Above 10 Can Manage Their Own Bank Account

KK SharmaApril 23, 2025 - 10:42 AM

This is a Big Move by RBI

In a groundbreaking move to promote financial inclusion and nurture early money management skills, the Reserve Bank of India (RBI) has declared that children aged 10 and above can now independently open and manage their own savings and fixed deposit accounts. Under the new policy, which is a major step away from the policy that was previously in place-the earlier scheme allowed parents or legal guardians alone to manage bank accounts of minors.

RBI Gives Financial Freedom to Young Adults

This new law brings personal finance just that much closer to very small children so they can get some hands-on practice in managing their own finances. According to the RBI’s official circular, banks—both commercial and cooperative across the country—must now allow minors aged 10 or above to have complete control over their savings or fixed deposit accounts. This step will not only promote the financial literacy of the youngest age possible but also confidence and responsibility among today’s youngsters.

More Than a Bank Account.

This is a Big Move by RBI
Banks can not just open and operate accounts for minors; they can also provide services to facilitate direct on-line transactions, debit cards, ATM services, and even cheque books-all depending on a bank’s internal risk policies and account activity. “Only, it must ensure that these accounts cannot be overdrawn and will always show a positive balance,” added Nessa.

Banks Still Hold the Reins on Safety

The RBI is promoting the youth but at the same time, it is necessary to be sure of their safety. Banks are required to do due diligence at the time of opening an account for a minor and will keep monitoring the same on an ongoing basis. Such accounts may still be opened with the assistance of a guardian and the minor can nominate his mother or any other legal guardian for the purpose.

Deadline for Banks: July 1, 2025

All banks have been mandated to bring new or revamp existing internal policies internalized in all the changes on or before July 1, 2025 thereby giving institutions enough time to create infrastructures within their systems and prepare personnel for smooth implementation.

This is a progressive approach of RBI seen as such towards educating the next
generation for financial independence in life. Such freedom given to children in
managing their own bank accounts lays a very sound base for tomorrow’s smarter,
financially educated youth of India.