RBI Empowers Young Savers: 10-Year-Olds Can Now Open Bank Accounts Independently
The Reserve Bank of India (RBI) has announced a significant change in banking regulations, empowering minors to manage their finances independently. From now on, children above the age of 10 can open and operate savings and term deposit accounts without needing a guardian’s signature.
This move, effective immediately, follows the RBI’s release of revised instructions on minor’s deposit accounts. The central bank aims to promote financial literacy and inclusion among young Indians.
The new guidelines allow minors of any age to open accounts, though independent operation is restricted to those above 10. This decision is expected to encourage parents to instill financial responsibility in their children at an early age.
This landmark decision by the RBI is a step towards a more inclusive and financially empowered younger generation. Experts believe this will foster better financial habits and potentially boost the nation’s savings rate in the long run. The impact on the burgeoning fintech sector targeting younger demographics is also expected to be significant.
