RBI guidelines empower minors to manage finances independently with bank-set limits, facilitating smooth transition to adulthood.

The Reserve Bank of India (RBI) has introduced new guidelines that empower minors in managing finances, allowing those above the age of 10 to independently operate accounts with bank-set limits. This move enables minors to open accounts through a guardian, which can include the mother. Banks are now permitted to provide services such as internet banking and debit cards to minors based on a risk assessment. When the minor reaches adulthood, updated account details will be necessary to ensure a seamless transition and ongoing financial responsibility. These new guidelines aim to promote financial literacy and independence among younger individuals in India.