Source: BS
Context:
The Reserve Bank of India (RBI) has issued a draft circular updating guidelines for Basic Savings Bank Deposit (BSBD) accounts, aiming to enhance customer service, promote digitisation, and deepen financial inclusion. BSBD accounts include those opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY).
What Is a BSBD Account?
- A Basic Savings Bank Deposit (BSBD) account is a no-frills savings account designed to provide basic banking facilities to every individual without requiring a minimum balance.
- Accounts opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY) are treated as BSBD accounts.
- Over 566 million PMJDY accounts have been opened, holding deposits of approximately ₹2.67 trillion.
Key Features of BSBD Accounts
| Feature | Description |
|---|---|
| 1. Zero Minimum Balance | No minimum balance requirement. All basic facilities are provided free of charge. |
| 2. Unlimited Deposits | Deposits allowed through cash, ATMs, cash deposit machines, and electronic channels without any limit. |
| 3. Free Core Services | • Minimum four free withdrawals per month (including ATM & fund transfers) • Free debit card and ATM facilities • Cheque book with at least 25 leaves per year • Free passbook or monthly statement • Free internet and mobile banking access |
| 4. Unlimited Digital Transactions | No cap or charge on UPI, NEFT, RTGS, IMPS, or PoS transactions. |
| 5. Optional Paid Services | Banks may offer additional services with or without charges, but must follow transparent and non-discriminatory practices with prior disclosure to customers. |
| 6. Single Account Restriction | • Only one BSBD account allowed per customer across all banks. • Customers must declare they do not hold another BSBD account. • If another savings account exists, it must be closed within 30 days of opening a BSBD account. • BSBD holders may also open term deposit accounts. |
| 7. Conversion and Switching | Existing savings account holders can convert their accounts to BSBD within seven days upon request. |
Significance
- Promotes financial inclusion for unbanked and underbanked populations.
- Aligns with the digitisation of banking services.
- Provides a standardised, cost-free, and accessible account for low-income and first-time bank users.
