Mumbai: The Reserve Bank of India (RBI) has released a draft circular aimed at improving Basic Savings Bank Deposit (BSBD) accounts, also known as zero balance accounts. The goal is to make banking easier, more digital, and transparent, especially for low-income account holders.
What Are BSBD Accounts?
BSBD accounts do not require a minimum balance. These include accounts opened under the Jan Dhan Yojana and total more than 5.66 crore in number. So far, over Rs 2.67 trillion is deposited in these accounts. Customers can deposit and withdraw money freely and receive government benefits without maintaining any minimum balance.
New Free Facilities Proposed by RBI
According to RBI’s proposal, BSBD accounts will offer the following free services:
- Unlimited cash deposits through branches, ATMs, or business correspondents
- Free ATM/Debit cards
- At least 25 free cheque leaves per year
- Passbook or monthly statements without extra charges
- Internet and mobile banking facilities
Free Withdrawals and Digital Transactions
Account holders will get at least 4 free withdrawals per month. Digital transactions like UPI, NEFT, RTGS, IMPS, and PoS payments will also be free. Customers can choose to convert their regular savings accounts into BSBD accounts if they want.
Other Important Points
Banks will educate customers about BSBD accounts. A customer can hold only one BSBD account in one bank. Banks may offer additional services, but fees must be clear and consistent.
