Can a 10-Year-Old Be Financially Independent? RBI Says Yes!

Imagine a 10-year-old walking into a bank, not to accompany their parents, but to open their own savings account. That future is no longer just a vision—it’s reality.

In a landmark move that could redefine how Indian children engage with money, the Reserve Bank of India (RBI) has announced that minors aged 10 years and above can now independently open and operate their own savings and term deposit accounts. Yes, you read that right—independently.

This isn’t just a banking update. It’s a societal shift. One that aligns with India's push towards financial inclusion and digital literacy, and also opens doors for fintech startups catering to Gen Z and Gen Alpha users.

A Step Toward Early Financial Education

The new guidelines, released by RBI on Monday, empower children to manage their finances from a young age—introducing them to concepts of savings, interest, budgeting, and responsible spending.

"Minors above such an age limit not less than 10 years… may be allowed to open and operate savings/term deposit accounts independently, if they so desire,” the circular stated.

This change could potentially build a generation of financially savvy Indians—kids who not only know how to save but also understand the value of money from a formative age. For an economy that is going digital at lightning speed, early financial onboarding could be a game-changer.

From Piggy Banks to Digital Wallets: Banks Can Offer Debit Cards, Net Banking to Kids

What makes this shift even more interesting is that RBI is giving banks the liberty to offer digital banking services like internet banking, debit cards, ATM access, and cheque books to these minor account holders—based on the banks' own risk assessment policies.

This opens up a massive opportunity for banks and fintech startups alike to innovate for a new audience—one that is digital-native, curious, and quick to adapt.

Of course, banks must ensure these accounts always maintain a credit balance. Overdrafts are not allowed. And when these minors turn 18, they’ll need to provide fresh operating instructions and a specimen signature.

For children below 10, nothing changes drastically—parents or legal guardians will continue to open and operate accounts on their behalf. Interestingly, the RBI has specifically included mothers in the list of legal guardians eligible to open accounts for minors, a progressive and welcome touch that aligns with gender-equal policy frameworks.

KYC and Due Diligence—No Cutting Corners

While the RBI is easing access for minors, it's not compromising on safety. Banks must conduct thorough due diligence and maintain ongoing monitoring under standard Know Your Customer (KYC) norms for all minor accounts.

So, while young account holders are encouraged to explore banking, safeguards remain firmly in place.

Banks now have until July 1, 2025, to align their internal policies with the RBI's new guidelines. Until then, existing rules can continue. This gives institutions time to build robust frameworks for age-appropriate services and education tools.

Why Now? Catching Depositors Young

The announcement comes amid concerns about slower deposit growth compared to credit growth in India’s banking sector. Experts believe this move is part of RBI’s broader strategy to “catch depositors young” and nurture long-term banking relationships from childhood.

But more than deposits, this is about empowerment. Financial empowerment.

What This Means for India’s Fintech and EdTech Ecosystem

For startups focused on financial education, banking tech, and even edtech, this policy opens up a fresh and untapped demographic. Fintechs could now design apps, games, and platforms for children to understand money better. Startups working on financial literacy can align their curriculum with this new policy and integrate real-world banking simulations.

It’s also an opportunity for traditional banks to collaborate with tech startups to design safe and smart solutions that make banking more engaging for children and more reassuring for parents.

In a country where financial literacy is often left for adulthood—sometimes too late—this move by RBI has the potential to shift mindsets.

A 10-year-old managing a savings account isn’t just a novelty. It’s a sign of trust, a signal that we’re ready to prepare our children for a world where money decisions start early, and smartly.

As banks gear up to rewrite their playbooks, and startups pivot to embrace this younger audience, one thing is clear—India’s next generation of bank customers won’t be waiting until adulthood to learn about money.

They’ll already be in the queue. Possibly, in uniform and with a schoolbag.