RBI Circulars | RBI New Guidelines for Minors Bank Deposit Accounts | Exam prepp | RBI Grade B 2025

🚀 Download Our App & Start Learning Now! 📱 Exam Prepp App: http://bit.ly/40GSXRj 📞 Have Queries? Reach Out to Us! 📱 WhatsApp: +91 8800528912 📧 Email: [email protected] 🌐 Website: www.examprepp.com Here's a *simple and easy explanation* of the RBI’s new guidelines on **"O --- What’s the Circular About?* RBI has *updated* its rules to make it *easier and more consistent* for banks to open and manage deposit accounts (like savings and term deposits) for **minors (children below 18 years)**. --- *Key Points of the New Guidelines* 1. *Who can open a minor’s account?* A *minor of any age* can open a *savings or term deposit account* through their *natural or legal guardian* (including mother, as per past RBI circular). 2. *Can a minor operate the account independently?* Yes, *minors aged 10 years or above* can operate their *own account independently* if: They want to. The bank allows it (based on its internal risk policy). The bank clearly tells the child the terms and limits. 3. *What happens when the minor turns 18 (majority)?* The bank must: Collect *fresh signature and instructions* from the now-major account holder. Confirm the account balance (especially if it was operated by a guardian). Inform the minor *in advance* about the steps required at age 18. 4. *What banking services can minors get?* Banks *may offer* facilities like: Internet banking Debit/ATM card Cheque book (based on the bank's risk policy and product suitability) 5. *Are overdrafts allowed?* *No.* Minor accounts **must always have a credit balance**. Banks must ensure accounts are **not overdrawn**. 6. *What about KYC rules?* Banks must follow *Know Your Customer (KYC)* norms both *while opening* the minor’s account and *regularly* afterwards, as per RBI’s 2016 Master Direction on KYC. --- *When Will These Rules Apply?* Banks must **update their policies by July 1, 2025**. Till then, **existing rules can continue**. --- *Legal Backing* These guidelines are issued under Sections *35A* and *56* of the **Banking Regulation Act, 1949**. - *✅ RBI Circulars Tags* RBI Circulars RBI Circulars for NBFC RBI Circulars and Notifications RBI Circulars Latest RBI Circulars for RBI Grade B RBI Circulars Feb 2025 RBI Circular Last 6 Months RBI Circulars Jan 2025 RBI Circulars MCQ RBI Circulars 2025 Monthly RBI Circulars --- *✅ SEBI Circulars Tags* SEBI Circulars Important SEBI Circulars --- *✅ RBI Grade B Exam Tags* RBI Grade B 2025 RBI Grade B Finance Lectures RBI Circulars for RBI Grade B RBI Grade B Course RBI Grade B Preparation RBI Grade B Exam RBI Grade B Current Affairs --- *✅ Finance & Current Affairs Tags* Finance Current Affairs RBI Grade B Finance -- 📚 Courses Available: ✅ RBI Grade B | NABARD | SEBI | PFRDA ✅ DBF | JAIIB | CAIIB | Banking Exams ✅ General Awareness for SBI & IBPS 🔔 Subscribe Now & Stay Updated! 🎥 YouTube Channel: @Exam_Prepp #ExamPrepp #BankingExams #JAIIB #CAIIB #DBF #RBIGradeB #SBI #IBPS #Finance #NABARD