The Basic Savings Bank Deposit Account allows you to bank with a zero minimum balance requirement. All the existing ‘No-frills’ accounts opened by the banks are now converted into BSBDA in compliance with the guidelines issued on August 22, 2012 by the Reserve Bank of India (RBI).
Under the Basic Savings Bank Deposit Account (BSBDA) scheme of Reserve Bank of India:
- The Basic Savings Bank Deposit Account should be considered as a normal banking service available to all customers (Any individual, including poor or those from weaker section of the society), through branches.
- BSBDA guidelines are applicable to “all scheduled commercial banks in India, including foreign banks having branches in India”.
- The services available in the account will include deposit and withdrawal of cash at bank branch as well as Free ATMs-cum-Debit Card; receipt/credit of money through electronic payment channels or by means of deposit/collection of cheques drawn by Central/State Government agencies and departments.
- There will be no limit on the number of deposits that can be made in a month, account holders will be allowed a maximum of four withdrawals in a month, including ATM withdrawals.
- No charge will be levied for non-operation/activation of in-operative ‘Basic Savings Bank Deposit Account’.
- Holders of ‘Basic Savings Bank Deposit Account’ will not be eligible for opening any other savings bank deposit account in that bank. If a customer has any other existing savings bank deposit account in that bank, he/she will be required to close it within 30 days from the date of opening a ‘Basic Savings Bank Deposit Account’.
- One can have Term/Fixed Deposit, Recurring Deposit etc., accounts in the bank where one holds ‘Basic Savings Bank Deposit Account’.
- The ‘Basic Savings Bank Deposit Account’ would be subject to RBI instructions on Know Your Customer (KYC) / Anti-Money Laundering (AML) for opening of bank accounts issued from time to time. If such account is opened on the basis of simplified KYC norms, the account would additionally be treated as a ‘Small Account’.
- Limits in BSBDA (Accounts with introduction/ Small Accounts):
(a) Aggregate of all credits in a financial year does not exceed Rs.1.00 lac
(b)The aggregate of all withdrawals and transfers in a month does not exceed Rs.10,000/-
(c)Balance at any point of time does not exceed Rs.50,000/-.
(d)The aim of introducing Basic Savings Bank Deposit Account is part of the efforts of RBI for furthering financial inclusion objectives.