Nagpur, India: In a new move to teach children about money and savings, the Reserve Bank of India (RBI) has said that kids who are 10 years old or older can now open and manage their own bank accounts without needing a parent or guardian to help them.

These accounts can be savings or fixed deposit accounts. Banks will still set some rules, such as how much money can be kept in the account or how much can be spent at one time, to make sure children use the accounts safely.

Children may also be allowed to use debit or ATM cards, online banking, and even cheque books. But they must always keep some money in their account and are not allowed to take out more than what they have.

For children younger than 10, parents or legal guardians will continue to operate the account. The RBI has also said that the mother of the child can be listed as the official guardian when opening an account.

Once the child turns 18, banks will ask for new documents and signatures to update the account.

All banks have been asked to make these changes by 1 July 2025. The RBI hopes this step will help children learn how to manage money from a young age.