The Reserve Bank of India (RBI) has taken a big step. From October 1, the Reserve Bank announced a proposal to upgrade the Basic Savings Bank Deposit (BSBD) account, in which all the facilities will be provided in such an account like the rest of the savings account and that too for free.
The purpose of these reforms is to provide customer-focused experiences, increase access and strengthen security for account holders, especially low-income and rural customers. More than 56.6 crore BSBD accounts have already been opened under the Pradhan Mantri Jan Dhan Yojana, of which more than 2.67 trillions are deposited.
The RBI said that these changes have been designed to strengthen financial inclusion by combining the changing needs of BSBD accounts and combining digital banking. The RBI said that the ongoing digitization of the banking sector requires a BSBD account that is due to the changing needs of the customers. These instructions will improve customer service improvement and financial inclusion for BSBD account holders.
Will the customers get?
Under the proposed rules, banks will have to consider BSBD account as a regular banking service and compulsory facilities will have to be given free. Which includes unlimited deposits, ATMs or debit cards, at least 25 -page checkbooks and free internet and mobile banking. There is no need to keep the minimum amount. These accounts will also provide free withdrawal facility including ATM transfer every month.
The difference between BSBD account and other savings account has to be explained
RBI has also asked banks to promote the characteristics and availability of BSBD accounts. Banks will also have to clarify the difference between BSBD and other savings accounts. This will decide that all people, including currently deprived people, can understand and use these basic financial services.
A customer can hold only one BSBD account in the banking system. If the customer already has a savings account in the same bank, then he will have to close within 30 days of opening the BSBD account. If the customers do not require to close the account within the fixed period, the bank will issue a notice and will give an additional time of 30 days before closing the savings account.
Digital transaction system, such as Unified Payments Interface (UPI), National Electronic Fund Transfer (NEFT), Real-Time Gross Settlement (RTGS), Tatkal Payment Services (IMPS) and Point of Sale (POS) will be available for any restrictions for BSBD account holders.
Other service can also be found
Banks can also provide additional service to BSBD account holders along with fee or without fee. Customers can convert their existing savings account into BSBD account within seven days, including internet or mobile banking. Banks will have to announce the applicants that they will not open another BSBD account in any other bank.
RBI has fixed the time limit for compliance on 31 March 2026. All BSBD accounts will have to be paid to the master instructions of RBI like KYC etc. To improve customers’ experience and ensure a quick solution to complaints, RBI has instructed banks to use the internal Lokpal system for BSBD accounts.
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