RBI’s Big Move: Kids Aged 10+ Can Now Operate Their Own Bank Accounts from July 2025

New Delhi (The Uttam Hindu): In a significant move towards empowering children financially, the Reserve Bank of India (RBI) has announced that children aged 10 years or older will now be allowed to operate their own bank accounts. This new provision will be implemented across all commercial banks, cooperative banks, and financial institutions starting July 2025.

The RBI has taken this decision to raise awareness about banking among children and to provide them with an opportunity to understand financial responsibilities. It will also help parents give more independence to their children in managing money.

Now even 10-year-olds can manage their savings accounts – RBI’s big decision

As part of the reforms, children aged 10 or above will be able to independently operate both savings and fixed deposit accounts. Banks have been given the flexibility to set their own rules regarding withdrawal and deposit limits for these accounts. The rules will also apply to accounts that may have been opened by parents but are operated by the children.

Once the account holder turns 18, a fresh KYC (Know Your Customer) process and signature update will be required. Documents such as Aadhaar Card will be mandatory to open the account.

The RBI has directed all banks to implement the necessary changes and update their technical systems by July 2025 to avoid any operational issues. This decision is expected not only to help children build financial awareness but also to prepare them to become responsible citizens in the future.