Mumbai: The Reserve Bank of India (RBI) has taken a big step towards financial independence of children by allowing minors above the age of 10 to independently open and operate savings and fixed deposit (FD) accounts. According to the revised guidelines issued on Monday, this rule will come into effect from July 1, 2025. Till now, the operation of accounts of children below the age of 18 was the responsibility of parents or guardians. Financial advisor Reena Mehta says, “This step will be helpful in developing an understanding of financial responsibility in children.” The RBI circular states that banks can provide facilities like internet banking, debit card and checkbook to minors based on their risk management policy. Banks will have to ensure that there is always a minimum balance in the accounts and withdrawals are limited. New signatures and instructions will be updated when the minor becomes an adult. Banks will also have to strictly implement the customer verification process. “This rule is a great opportunity to teach children the habit of saving,” said banking expert Ajay Sharma. The RBI has asked banks to formulate new policies by July 1, which will promote financial inclusion and responsibility.