RBI Clarifications on Basic Savings Bank Deposit (BSBD) Accounts
The Reserve Bank of India (RBI) has issued amendments effective from April 1, 2026, regarding BSBD accounts, clarifying several aspects related to their operation and facilities offered.
Key Directions and Clarifications
- Mobile and Internet Banking:
- Banks are required to offer mobile and internet banking services for BSBD accounts.
- No charges can be imposed for cash deposits either at the branch or via ATMs and business correspondents.
- Eligibility Criteria:
- RBI rejected the proposal to set eligibility criteria based on customer income or profile.
- The objective is to make BSBD accounts affordable and accessible to all.
- Risk Management and KYC:
- Standard KYC and anti-money laundering guidelines apply to BSBD accounts.
- RBI dismissed limiting facilities in BSBD accounts due to risks being similar to other savings accounts.
- Accounts for Minors:
- Banks can put restrictions on credits and balances in minor accounts for risk management.
- These accounts will follow the rules applicable to bank accounts in minors' names.
- Restrictions on Multiple BSBD Accounts:
- A BSBD account holder cannot open another BSBD account in the same or any other bank.
- RBI is considering creating a registry to prevent duplication of BSBD accounts.
- Banks can require a declaration that the customer does not hold a BSBD account at any other bank during account conversion.
- Additional Savings Account:
- A BSBD account holder is permitted to open another savings bank account in the same bank.
Implications for Customers
- Existing BSBD account holders can avail newly introduced free facilities upon request.
