The most common misconception we see in parent conversations: “I’m not sure if it’s even legal to give my 12-year-old a debit card.” The honest answer is — it’s not just legal, the RBI has specific rules about how it should work. Most parents have just never had reason to read them.

This post is a plain-English walkthrough of what the RBI’s rules actually say, what they mean for a parent considering a kids’ card, and the disclosures you should expect from any provider.

This is not a regulatory advisory; the RBI’s master directions update over time, so for any specific decision, check the current text on the RBI website. But the principles below have been stable for years.

Three things the RBI regulates here

The RBI’s framework around money for minors covers three things, and they’re often confused with each other:

  1. Bank savings accounts for minors — opened by a guardian, owned in the minor’s name.
  2. Debit cards on those bank accounts — issued to specific age groups, with limits.
  3. Prepaid Payment Instruments (PPIs) for minors — what most “kids’ cards” actually are.

Each has its own rules. Junio, FamPay, Akudo, and similar products fall under the third category — PPIs — not the first two. This matters because the rules are very different.

1. Minor savings bank accounts

Any Indian bank can open a savings account in a minor’s name. The RBI permits two structures:

  • Guardian-operated. The minor is the account holder; the guardian (parent) operates it. This is the default for kids under 10.
  • Self-operated by the minor. Permitted for minors aged 10 and above, at the bank’s discretion. The minor can sign cheques, withdraw cash, and use net banking — within limits the bank sets.

Limits typically applied (varies by bank):

  • Lower transaction limits than adult accounts
  • No overdraft / no credit
  • Joint with parent until 18; auto-converts at 18

So a 14-year-old can absolutely have a bank account and a debit card on it, in their name, that they operate themselves. This is not unusual or grey-area. Most large Indian banks have explicit minor-account products.

2. Debit cards for minors

The RBI permits debit cards for minor account holders, with these standard guardrails:

  • Issued only to minors aged 10 and above for self-operation
  • ATM withdrawal limits set by the bank (typically lower than adult cards)
  • POS / online transaction limits set by the bank (typically lower)
  • No international transactions, generally, unless explicitly enabled by parent + bank

A 12-year-old with their own debit card on a minor savings account is operating squarely within RBI guidelines.

3. Prepaid Payment Instruments (PPIs) — what Junio, FamPay, Akudo are

This is where most “kids’ cards” live. PPIs are not bank accounts and not debit cards. They are prepaid — you load money onto them, and the kid spends it. The RBI’s PPI Master Directions govern the entire category.

The main rules a parent should know:

  • PPIs come in tiers. Minimum-KYC (low limit, no fund transfers in) and Full-KYC (higher limit, can receive transfers, more features). Junio’s “before V-KYC” state is minimum-KYC; after V-KYC it becomes full-KYC.
  • Balance limits. Minimum-KYC PPI: ₹10,000 outstanding at any time. Full-KYC PPI: up to ₹2,00,000 outstanding (depending on the issuer’s tier).
  • Loading limits. Cash loading is not allowed on PPIs. Loads must come from a bank account or another KYC-compliant source.
  • Cannot earn interest. Money sitting on a PPI does not earn interest, by RBI design. (FD-style features like Junio’s lock the money in a separate FD instrument outside the PPI; that’s allowed and how the interest comes.)
  • Disclosed issuer. Every PPI must clearly disclose who the actual licensed issuer is. For Junio, that’s Transcorp International Limited. The Junio app and card both display this — required by RBI rules.

For minors, PPIs are particularly suited because:

  • The KYC for the parent is often sufficient (the parent is the linked account holder). The minor doesn’t need their own PAN, Aadhaar, etc.
  • Limits are naturally lower than a bank debit card, which suits a kids’ product
  • Loading is controlled (parent-initiated), which gives the parent oversight by default

Why most “kids’ cards” are PPIs, not bank cards

Three reasons:

  1. Easier KYC. Opening a bank account for a 9-year-old means full minor-account paperwork. PPIs use parent KYC primarily.
  2. Better default controls. PPIs have natural ceiling limits and limited fund-transfer rules — features that suit a kids’ product without extra parental locks.
  3. Faster product iteration. PPIs are issued by licensed PPI providers (Transcorp, etc.) with whom fintechs can partner. Building a full bank product would require either becoming a bank or partnering with one in a much heavier integration.

This is why you’ll find Junio (PPI), FamPay (PPI), Akudo (PPI), and slice (different — adult credit card / wallet hybrid, not a kids’ product) — but you won’t find a true bank-issued debit card marketed primarily as a “kids’ card.” If it walks like a kids’ card, it’s almost certainly a PPI.

What disclosures you should expect from any kids’ PPI provider

By RBI rules, the provider should clearly disclose:

  • Who the licensed PPI issuer is — Transcorp / Yes Bank / etc. The fintech is the brand; the issuer is the licensed entity.
  • The fee structure — issuance fee, reissuance fee, conversion fee if any. Should be on a public page.
  • Customer support contacts for the issuer — separate from the fintech’s own support, because if there’s a regulatory escalation, it goes to the issuer.
  • Grievance redressal process — how to escalate, where to file complaints.
  • Validity — most PPIs are valid for several years. Check the expiry on the card.

If you can’t easily find these on the provider’s website, that’s a red flag.

What KYC is required

For Junio specifically (and most kids’ PPIs):

  • Parent KYC. Done at signup — Aadhaar / PAN / passport-style. Parent is the account creator and linked person.
  • Child V-KYC (Video KYC). A short video session that confirms the parent and child match the records. This unlocks higher limits and full-KYC features. For a kid, the V-KYC is mostly a parent task — you record yourself holding up documents and saying you’re the legal guardian.
  • No PAN required for the kid. Required only at 18+, for adult products. PPI for a minor doesn’t need it.

Get the Junio app. All RBI-required disclosures (issuer, fees, grievance, validity) are in the app’s About / Help section, exactly as the rules require. Download Junio.

Common myths

“My kid is too young to be on RBI radar.” The RBI doesn’t track individual minors. It regulates the issuers — Transcorp, banks, etc. Your kid having a card doesn’t put them on any list.

“PPIs are unregulated wallets.” False. PPIs are issued under specific RBI licenses with extensive rules around capital, KYC, cybersecurity, customer protection, and grievance redressal.

“If something goes wrong, I have no recourse.” False. PPI users have full grievance redressal rights — through the issuer first, then the RBI Ombudsman scheme, then the courts. Same recourse as a bank dispute.

“Junio holds my kid’s money.” Technically, no. Junio is the consumer brand and app. The actual money on the card is held by Transcorp, the licensed PPI issuer, in a regulated escrow. Junio Payments Pvt. Ltd. cannot access that money directly — it’s a strict separation by RBI design.

When to escalate

If you’ve had an issue with a kids’ PPI that the provider hasn’t resolved in 30 days:

  1. Email the licensed PPI issuer’s grievance officer (their email is required to be on the app/website).
  2. If still unresolved, file with the RBI’s Integrated Ombudsman Scheme — complaints go to cms.rbi.org.in and are handled by the RBI directly. There’s no fee.
  3. The Ombudsman has a 30-day resolution mandate. After that, you can escalate to court.

For Junio specifically, our team’s first line is hello@junio.in. The Transcorp grievance line is cards@transcorpint.com. The RBI CMS is the regulator-level escalation.

The takeaway

Regulated, standardised, and quite well-protected — that’s the actual state of cards and accounts for minors in India. The RBI’s framework isn’t perfect, but it covers the main consumer concerns: limits, disclosures, grievance, KYC, money safety. Once a parent understands which type of product their kid is using (most often a PPI), the rest of the rules become straightforward.

Don’t be the parent who refuses to let their teen have a card because of vague “RBI restrictions.” That’s not a real thing. The RBI has made these products specifically possible for kids and teens. The question worth asking is whether the specific product you’re considering is well-built and well-disclosed — not whether the category itself is safe.