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RBI 2025: The Reserve Bank of India (RBI) has recently issued a new circular allowing children above the age of 10 to open and operate their own bank accounts independently. This move aims to promote financial literacy among children and offer them an opportunity to learn saving habits and financial responsibility.

According to the new directive, banks can allow children over 10 years of age to open savings or term deposit accounts and operate them independently. Additionally, they can be provided with checkbooks, ATM debit cards, and internet banking services, based on the bank's risk management policies. These services will be provided keeping in mind the financial capabilities and risk factors related to the minors.

The RBI has specified that minors under the age of 10 can open accounts only with the consent of their guardian. Furthermore, it is crucial that the account remains in credit balance and no excessive withdrawals are made. Once the minor turns an adult, new operating instructions and signature samples will need to be recorded and maintained by the bank.

The RBI has instructed banks to ensure thorough checks before opening accounts for minors. Banks are now required to update their policies or create new ones in line with the revised guidelines from the RBI.

This directive will familiarize children with the financial world and instill a sense of financial responsibility from an early age. This initiative will pave the way for a more financially independent and informed future generation.