Jan Dhan Account: Big news for Jan Dhan Account holders. The Reserve Bank of India (RBI) has taken a major step. Effective October 1st, the Reserve Bank announced a proposal to upgrade Basic Savings Bank Deposit (BSBD) accounts, offering all the same features as other savings accounts, free of charge.
These reforms aim to provide a customer-centric experience, enhance access, and strengthen security for account holders, especially low-income and rural customers. More than 566 million BSBD accounts have already been opened under the Pradhan Mantri Jan Dhan Yojana, with deposits of over Rs 2.67 trillion.
The RBI stated that these changes are designed to strengthen financial inclusion by aligning the evolving needs of BSBD account holders with digital banking. The RBI stated that the ongoing digitization of the banking sector requires a BSBD account that responds to the changing needs of customers. These guidelines will improve customer service for BSBD account holders and strengthen financial inclusion.
What will customers get?
Under the proposed rules, banks will be required to treat BSBD accounts as a regular banking service and provide essential features free of charge, including unlimited deposits, an ATM or debit card, a checkbook with at least 25 pages annually, and free internet and mobile banking. There is no minimum balance requirement. These accounts will also offer at least four free withdrawals per month, including ATM transfers.
The RBI has also directed banks to promote the features and availability of BSBD accounts. Banks must also explain to potential customers the differences between BSBD and other savings accounts. This will ensure that all individuals, including those currently unbanked, can understand and utilize these basic financial services.
A customer can hold only one BSBD account in the banking system. If the customer already has a savings account with the same bank, it must be closed within 30 days of opening the BSBD account. If the customer does not request closure within the stipulated period, the bank will issue a notice and provide an additional 30 days before closing the savings account.
Digital transaction systems, such as Unified Payments Interface (UPI), National Electronic Funds Transfer (NEFT), Real-Time Gross Settlement (RTGS), Immediate Payment Service (IMPS) and Point of Sale (POS) transactions, will be available to BSBD account holders without any restrictions.
