The aim of introducing ‘Basic Savings Bank Deposit Account'(BSBDA) is a part of the efforts of RBI for promoting ‘Financial Inclusion’ objectives. BSBDA is the new word coined to substitute the nomenclature ‘no-frills’ account. In BSBDA, the account holder gets the basic banking services with minimum common facilities either with nil or very low minimum balance. Banks do not charge the customers for not maintaining minimum balance in the BSBDA, so as to enable such accounts accessible to vast sections of population.
It is important to notice that the ‘Basic Savings Bank Deposit Account’ is not restricted to poor and weaker section of the population. There are no restrictions on criteria like age, income, amount etc., for opening BSBDA by banks for individuals. The account is considered as a normal banking service available to all customers. Even, the normal saving bank account can be converted into BSBDA at the request of customer, but such customers should give their consent in writing for the same and they should be informed of the features and extent of services available in BSBDAs.
Salient features of ‘Basic Savings Bank Deposit Account’
- In BSBDA, the services available in the account will include deposit and withdrawal of cash at bank branch as well as ATMs; receipt/credit of money through electronic payment channels like ECS/RTGS/NEFT or by means of deposit/collection of cheques drawn by Central/State Government agencies and departments;
- Savings Bank Deposit Interest Rate, are applicable to deposits held in ‘Basic Savings Bank Deposit Account’.
- Pass book is issued to account holder free of charge. However, cheque book facility is not envisaged under stipulated basic minimum services of BSBDA.
- Facility of (RuPay) ATM card or ATM-cum-Debit Card will be provided without any charges or annual subscriptions. If the customer does not want the card, banks do not force customers to hold such cards.
- No charge will be levied for non-operation/activation of in-operative ‘Basic Savings Bank Deposit Account’.
- While there will be no limit on the number of deposits that can be made in a month, account holders will be allowed a maximum of four withdrawals in a month, including ATM withdrawals. However, balance enquiry through ATMs is not counted for calculation of four withdrawals.
- Banks would be free to modify other requirements including pricing structure for value-added services and they can levy additional charges for the services provided by them beyond the stipulated basic minimum services. These charges shall be only on reasonable and transparent basis besides applied in a non-discriminatory manner. Nevertheless, Accounts enjoying additional facilities under the reasonable pricing structure for value added services, exclusively for BSBDA customers should not be treated as BSBDA. In case of additional charges are not levied by the bank for the value added facilities and or the bank does not stipulates a condition of minimum balance to be maintained in the BSBDA for value added facilities, and then the account can be treated as BSBDA.
- Holders of ‘Basic Savings Bank Deposit Account’ will not be eligible for opening any other savings bank deposit account in that bank. If a customer has any other existing savings bank deposit 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’. While opening the BSBDA customers’ consent in writing will be obtained by the banks that his/her existing non-BSBDA Savings Banks accounts will be closed after 30 days.
- One can have Term/Fixed Deposit, Recurring Deposit accounts in the bank where he/she holds ‘Basic Savings Bank Deposit Account’.
- The ‘no-frills’ accounts which were existed before 10.08.2012 in the banks are required to be converted as ‘Basic Savings Bank Deposit Account’
- Opening of BSBDA are subject to RBI instructions on Know Your Customer (KYC) / Anti-Money Laundering (AML). If such account is opened on the basis of simplified KYC norms, the account would additionally be treated as a ‘Small Account’ and would be subject to conditions stipulated for such accounts as under.
- the aggregate of all credits in a financial year does not exceed rupees one lakh;
- the aggregate of all withdrawals and transfers in a month does not exceed rupees ten thousand; and
- the balance at any point of time does not exceed rupees fifty thousand.
- 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
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