RBI News: RBI Announces New BSBD Rules for 2026, Zero-Balance Accounts With More Free Services
Reserve Bank of India has issued updated guidelines for Basic Savings Bank Deposit (BSBD) accounts, offering expanded free services and continued zero-balance facilities across all types of banks.
The revised directions, released after public feedback on the draft BSBD norms published on October 1, 2025, are set to take effect from April 1, 2026, or earlier in case a payments bank adopts them before the deadline.
The Basic Savings Bank Deposit (BSBD) account is designed to promote financial inclusion by giving customers access to essential banking services at no cost. RBI said the new framework reflects changing customer needs in a digital ecosystem and incorporates suggestions received from stakeholders.
The new rules apply to commercial banks, regional rural banks, small finance banks, payments banks, local area banks, urban co-operatives, and rural co-operatives, and fall under the central bank’s Responsible Business Conduct framework. RBI stated that the objective is to enhance affordability, increase the usage of BSBD accounts, and improve customer service.
Under the revised BSBD norms, every bank must offer BSBD accounts with no minimum balance requirement and a set of free facilities.
These include free cash deposits, unlimited deposits through any channel, a free ATM or ATM-cum-debit card with no annual charges, a cheque book of at least 25 leaves per year, internet and mobile banking, and free account statements or passbooks.
Customers will also be eligible to at least four free withdrawals per month, including ATM and transfer transactions. Digital payment services such as UPI, NEFT, RTGS, IMPS and PoS payments will not be counted toward the monthly withdrawal limit.
Customers will receive ATM cards, cheque books, and digital banking tools only if requested, and existing BSBD account holders may claim any newly introduced free service through physical or digital channels. Additional facilities may be offered transparently and without imposing a minimum balance requirement.
KYC, AML and minor account rules will continue to apply under the recently issued KYC Directions, 2025. Customers may also convert their regular savings accounts into BSBD accounts, and banks must process such requests within seven days, while also enabling the conversion process online.
However, a customer cannot maintain more than one BSBD account across the entire banking system, and banks must obtain a declaration to ensure compliance.
Banks have been instructed to publicise BSBD features clearly and explain how these accounts differ from regular savings products so that customers can make informed choices.
RBI has encouraged payments banks to adopt the revised framework early. The updated BSBD rules will officially come into force from April 1, 2026, unless implemented sooner by individual banks.
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