RBI News: RBI Proposes Major Upgrade to Basic Savings Bank Deposit Accounts (BSBDA): Free Digital Transactions, More Facilities

RBI News: RBI Proposes Major Upgrade to Basic Savings Bank Deposit Accounts (BSBDA): Free Digital Transactions, More Facilities

New Delhi: Reserve Bank of India (RBI) has proposed new reforms to Basic Savings Bank Deposit Accounts (BSBDA) to make banking more customer-friendly, digitally integrated, and inclusive. The changes announced by RBI on October 1, 2025, are expected to be implemented by March 31, 2026.

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What is a BSBDA?

A BSBDA is a zero-balance regular savings account aimed at promoting financial inclusion among citizens. All Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts are part of this category, with over 566 million accounts already opened, holding deposits worth more than ₹2.67 trillion rupees.

Key Changes Proposed by RBI

• Unlimited Deposits: No restriction on the number or value of deposits per month.
• Free Digital Transactions: Unlimited use of UPI, NEFT, RTGS, IMPS, and PoS transactions without charges.
• Free Facilities:
  • ATM card or debit card
  • Internet and mobile banking
  • Passbook or monthly statement
  • Minimum 25 cheque leaves per year
• Withdrawals: At least four free withdrawals (including ATM and fund transfers) every month.
• Additional Services: Banks may offer extra facilities (with or without charges) in a transparent, non-discriminatory manner.

One BSBDA Rule

• A customer can hold only one BSBDA across all banks.
• If a savings account already exists in the same bank, it must be closed within 30 days of opening a BSBDA.
• Customers can, however, open term deposit accounts alongside their BSBDA.

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Stronger Consumer Protection

• Internal Ombudsman System: Banks must resolve complaints faster.
• Rural Cooperative Banks: To be brought under the RBI Ombudsman Scheme, ensuring better grievance redressal.

With these proposed reforms, the RBI is wants the Basic Savings Bank Deposit Account as a modern, digital-first, and inclusive banking option. By offering unlimited free digital transactions, stronger customer protections, and simplified access, RBI wants to boost India’s journey toward a cashless economy.