RBI: In a major step for the general public, the Reserve Bank of India (RBI) has further expanded the features of zero-balance Basic Savings Bank Deposit (BSBD) accounts. Banks will no longer consider these accounts to be low-quality or have limited features. The RBI has clearly stated that BSBD accounts should receive the same services as regular savings accounts. These new rules will take effect on April 1, 2026.
The RBI has also mandated that if a customer wishes, their existing savings account can be converted to a BSBD account within just seven days. The customer simply needs to submit a written or online request. Previously, many banks delayed this process or imposed additional conditions on customers.
What facilities will now be available absolutely free?
There will be no annual charge on ATM or debit cards.
You will get a cheque book of at least 25 pages absolutely free in a year.
Internet banking, mobile banking and free passbook/monthly statement will also be available.
Customers will be able to make free cash withdrawals at least four times every month.
Digital transactions like UPI, IMPS, NEFT, RTGS, PoS swipe – will not be counted in the limit of these four free transactions.
The most important thing is that there will be no restriction on depositing money any number of times in a month.
Banks will no longer be able to add any conditions
The RBI has strictly stated that banks will not make these facilities a condition of opening an account. This means that customers can only avail of these facilities if they wish to do so, and banks cannot force them in any way.
If someone already has a BSBD account, they can avail of new features upon request. Banks may offer additional features if they wish, but they cannot impose a minimum balance requirement.
The Reserve Bank rejected the suggestions of banks
Banks had requested the RBI limit the number of BSBD accounts based on customer income and profile to prevent misuse. However, the RBI refused to accept this suggestion, stating that the purpose of BSBD accounts is to provide affordable banking services to everyone.