Mumbai, April 21, 2025 — In a significant move aimed at encouraging financial literacy among the youth, the Reserve Bank of India (RBI) has issued new guidelines allowing minors above the age of 10 to operate their bank accounts independently.
The circular, released on Monday, directs all commercial banks to enable children in this age group to manage their accounts without the need for parental or guardian signatures. This policy aims to promote early financial discipline and equip children with the tools to understand banking and money management from a young age.
Under the revised guidelines, banks are instructed to put in place appropriate safeguards and limits, such as daily withdrawal caps, to ensure secure account usage by minors. The RBI stated that this measure is part of its broader objective to instill responsible financial behavior and increase inclusion, especially in rural and semi-urban areas where formal banking habits often develop late.
Financial institutions are expected to modify their core banking software accordingly and create educational materials tailored for young account holders. This includes guidance on digital transactions, ATM use, and internet banking safety.
The central bank emphasized that the decision is not only about giving minors autonomy but also about shaping a generation that is financially aware, confident, and secure in handling monetary decisions.
