Account holders of the basic savings holders are no longer bound to maintain a specific balance in their accounts, as per RBI’s new regulations and norms. The apex bank has loosened the noose around the rules for the Basic Savings Bank Deposit (BSBD) Accounts,
which are also known as no-frills account.
In addition to that, the RBI has also made sure that banks offer some extra facilities for such account holders.
Basic Savings Bank Deposit Accounts :-
BSBD Accounts is a concept designed for people who cannot afford savings accounts which require a minimum balance. BSBD accounts do not have any such requirements.
However, if an account holder asks for any such additional facilities, they were asked to maintain some minimum balance amount in their bank accounts.
With the new development brought about by the RBI, the account holders will be given these facilities without such requirements demanded from them.
RBI Loosens Regulations For BSBD Account Holders :-
In recent history, when the GST Council announced a huge cut in the tax, some services were exempted too, one of which was the services provided by banks to BSBD account holders were to be exempted.
Banks are now required to provide account holders of BSBD accounts with chequebooks and other such facilities, at no cost. These facilities include:
The maximum number of withdrawals from ATMs will be four per month.
Account holders will now be able to deposit cash at any branch of the bank.
Account holders will get an ATM card or an ATM-cum-Debit Card.
There will be no limit on the number of deposits that can be done in a month.
There will be no limit on the amount of money that can be deposited in a month.
The RBI said, “Banks are free to provide additional value-added services, including issue of cheque book, beyond the above minimum facilities, which may/may not be priced (in non-discriminatory manner) subject to disclosure…Offering such additional services will not make it a non-BSBD Account, so long as the prescribed minimum services are provided free of charge.”
Additional services can be offered by the banks to account holders, but asking the customers to maintain a minimum balance is no longer mandatory.