RBI Lets Minors Aged 10+ Run Their Own Accounts
Why in the news
A new RBI circular widened access to banking for children, aiming at early financial literacy and inclusion.
Key facts
| Age group | How the account is run |
|---|---|
| 10 years and above | Can open and run savings or term deposit accounts alone, with no guardian oversight; cheque book use at the bank’s discretion |
| Below 10 years | Opened via a natural or legal guardian; mothers may be guardians |
Why it matters
- Helps financial inclusion, especially in semi-urban and rural areas.
- Fits Digital India and Jan Dhan aims of bringing youth into formal finance.
Possible uses
- Allowance savings, education goals, school savings clubs, UPI-linked accounts if allowed.
Exam angle
- Age threshold: 10 years.
- Mothers can now serve as guardians for younger minors.