About (Basic Saving Bank Deposit Account)
Under the guidelines issued on August 10, 2012 by RBI: Any individual, including poor or those from weaker section of the society, can open zero balance account in any bank. BSBDA guidelines are applicable to "all scheduled commercial banks in India, including foreign banks having branches in India".
All the accounts opened earlier as 'no-frills' account should be renamed as BSBDA. Banks are required to convert the existing 'no-frills' accountsâ€™ into 'Basic Savings Bank Deposit Accounts'.
The 'Basic Savings Bank Deposit Account' should be considered as a normal banking service available to all customers, through branches.
The aim of introducing 'Basic Savings Bank Deposit Account' is very much part of the efforts of RBI for furthering Financial Inclusion objectives.
Main Points of the BSBDA
- An individual is eligible to have only one 'Basic Savings Bank Deposit Account' in one bank.
- Holders of 'Basic Savings Bank Deposit Account' will not be eligible for opening any other savings account in that bank. If a customer has any other existing savings 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'.
Note: While opening the BSBDA customersâ€™ consent in writing be obtained that his existing non-BSBDA Savings Banks accounts will be closed after 30 days of opening BSBDA and banks are free to close such accounts after 30 days.
- One can have Term/Fixed Deposit, Recurring Deposit etc., accounts in the bank where one holds 'Basic Savings Bank Deposit Account'.
- Banks are advised not to impose restrictions like age and income criteria of the individual for opening BSBDA.
- There is no requirement for any initial deposit for opening a BSBDA.
- Banks should offer the ATM Debit Cards free of charge and no Annual fee should be levied on such Cards.
- In BSBDA, banks are required to provide free of charge minimum four withdrawals, through ATMs and other mode including RTGS/NEFT/ Clearing/Branch cash withdrawal/transfer/internet debits/standing instructions/EMI etc
- The Uniform rate of interest rates set by individual banks are applicable on the domestic savings deposit will be determined on the basis of end-of-day balance in the account.
- The normal saving bank account can be converted into BSBDA at the request of customer.
BSBDA-Small Accounts would be subject to the following conditions
- Total credits in such accounts should not exceed 1 lakh rupees in a year.
- Maximum balance in the account should not exceed 50,000 Rs at any time
- The total of debits by way of cash withdrawals and transfers will not exceed 10,000 rupees in a month
- Foreign remittances cannot be credited to Small Accounts without completing normal KYC formalities
- Small accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person provides proof of having applied for an Officially Valid Document.
- Small Accounts can only be opened at CBS linked branches of banks or at such branches where it is possible to manually monitor the fulfillments of the conditions.