RBI proposes basic savings bank deposit account as a standard service

Banks must offer customers a “basic savings bank deposit” (BSBD) account, including free facilities and without having to maintain a minimum balance, the Reserve Bank of India (RBI), in a draft circular, has said.

 

“The ongoing (digitisation) of the banking sector requires a BSBD account that is in sync with the customer’s evolving requirements. These directions are issued to improve customer service for BSBD account holders and enhance the usage thereof to deepen financial inclusion and (digitisation),” the RBI said. 

 

Those under the Pradhan Mantri Jan Dhan Yojana are BSBD accounts. Under that, a BSBD account is opened in any bank branch or a business correspondent (Bank Mitra) outlet by persons not having any other account. Over 566 million accounts have been opened. The accounts have deposits of ₹2.67 trillion.

 

 

The central bank, in the draft circular, has asked banks to publicise that BSBD accounts are available and their features. 

 

“It shall convey the differences between BSBD account and various savings bank account variants offered by them when a customer approaches it to open a deposit account,” the central bank said. 

 

A customer can convert a savings bank deposit account into a BSBD account. 

 

According to the circular, for a BSBD account the bank should provide unlimited deposits through cash, electronic channels, and ATMs/cash deposit machines, and provide free ATM facilities or debit cards, a cheque book of at least 25 leaves yearly, internet and mobile banking, and a passbook or monthly statement at no extra cost. 

 

Additionally, BSBD account holders will get at least four free withdrawals (including transfers and ATM use) per month.

 

Digital transactions like Unified Payments Interface, National Electronic Fund Transfer, Real-time Gross Settlement, Immediate Payment Service, and Point of Sale are unlimited.

 

Further, the RBI has stated banks may provide additional services, with or without charges, in a non-discretionary and non-discriminatory manner with disclosures to the customer. 

 

Meanwhile, the RBI has said that the holder of a BSBD account will not be eligible for opening another such account in any bank. 

 

Accordingly, before opening a BSBD account, a bank will take a declaration from the customer on this.

 

The holder of a BSBD account will not be eligible for opening any other savings bank account in the same bank. However, the person can open term-deposit accounts.  

A fresh stance

• BSBD accounts require  no minimum balance and  offer free basic services
• Customers can convert  savings accounts to  BSBD within seven days
• Digital transactions via  UPI, NEFT, etc, are free  and unlimited
• Only one BSBD account is allowed; other savings accounts must be closed within 30 days