RBI's new norms on independent minor accounts to boost customer acquisition, family engagement: Banking experts

In a significant shift from traditional banking norms regarding eligibility to open and operate individual accounts, the Reserve Bank of India (RBI) on Tuesday issued revised guidelines allowing minors above the age of 10 to independently open and operate savings bank accounts, should they wish to do so.

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This initiative aims to promote financial inclusion and bring uniformity to the process across banks. Key highlights of the guidelines include granting minors the autonomy to manage their own accounts and giving banks the discretion to implement this policy as per their internal protocols.

According to the guidelines, minors aged 10 years and above can open and operate savings bank accounts without the need for a guardian.

With regard to the discretion granted to banks, the RBI stated that individual banks may set their own limits on the age and amount up to which minors can independently operate these accounts. Banks are also allowed to determine the minimum documentation required for opening such accounts.

According to banking sector experts whom the New Indian Express discussed the implications of this shift, banks can potentially expand their customer base by early customer acquisition, family-wide engagements and cross selling opportunities.