RBI eases norms for Basic Savings Bank Deposit Accounts

The Reserve Bank of India (RBI) has eased the norms for the Basic Savings Bank Deposit Accounts.

New Facilities

• Issuance of Cheque Book which may/may not be priced.
• Allowing deposit of cash at bank branch as well as ATMs/CDMs without imposing any limit on the number and value of deposits that can be made in a month.
• Receipt/ credit of money through any electronic channel or by means of deposit /collection of cheques drawn by Central/State Government agencies and departments.
• Four withdrawals from ATMs in a month, and ATM Card or ATM-cum-Debit Card.

RBI has made clear that in lieu of providing these additional facilities the banks must not mandate any requirement of a minimum balance since it would alter the very nature of the accounts and is against the objective of financial inclusion.

Basic Savings Bank Deposit Accounts

Basic Savings Bank Deposit Accounts also known as no-frills accounts are accounts which do not mandate any minimum balance. The restrictions on these accounts were:

• One can only make four 4 debits in a month, either directly from the branch, ATM or through electronic transfers.
• One can t credit more than Rs1 lakh in a BSBD account in a year and can t have more than Rs 50,000 in it at any time.
• The total debits by cash withdrawals and transfers in a month cannot exceed Rs10,000.

Basic Savings Bank Deposit Accounts were primarily aimed towards enhancing financial inclusion among the economically weaker sections of the society. RBI has eased some of the restrictions to make them more attractive and to ensure the ease of experience for users.