RBI Proposes Major Changes for Zero-Balance Savings Accounts: All Banks to Offer BSBD Accounts with More Free Services
New Delhi: Reserve Bank of India (RBI) has released a draft circular proposing changes to the Basic Savings Bank Deposit Account (BSBDA) framework, commonly known as the Zero-Balance Savings Account.
The new proposal is introduced to make BSBDA accounts more customer-friendly with more free services and no minimum balance requirement.
As per the draft, all banks must adopt the new rules by March 31, 2026.
Key Highlights of RBI’s Draft Circular
Free Facilities Without Minimum Balance
Under the new changes, every bank must offer a BSBDA account as a normal banking service with the following free facilities:
- Unlimited cash deposits at branches, ATMs, or cash deposit machines.
- Unlimited electronic fund receipts and cheque deposits.
- Free ATM-cum-Debit Card without issuance or renewal charges.
- At least 25 free cheque leaves per year.
- Free passbook or monthly statement, including passbook continuation.
- Internet and mobile banking access at no extra cost.
Plus, there will be no requirement for customers to maintain a minimum balance in these accounts.
Withdrawals and Digital Transactions
- Account holders will get at least four free withdrawals per month (including ATM withdrawals and transfers).
- Digital transactions—such as UPI, NEFT, RTGS, IMPS, and PoS payments—will be unlimited and free, and will not count toward the withdrawal limit.
- Any charges on these services must comply with RBI or NPCI regulations.
RBI wants to promote cashless transactions and encourage customers to adopt digital banking channels.
Additional Services and Transparency
Banks may offer additional services on these accounts, either free or at transparent charges, but cannot link them to any minimum balance condition.
Customers can also choose whether they want a cheque book, debit card, or digital banking at the time of opening the account—banks cannot make these mandatory for customers.
Restrictions and Customer Declarations
- Each customer can hold only one BSBDA across the entire banking system.
- Before opening a new account, banks must obtain a declaration confirming that the applicant does not already have a BSBDA.
- If a customer has a regular savings account in the same bank, it must be closed within 30 days of opening the BSBDA.
- Banks must issue a reminder notice and may close the account themselves after an additional 30-day grace period.
- Customers are still allowed to open term deposit accounts in the same bank.
Conversion of Existing Accounts
Existing customers can request conversion of their regular savings account into a BSBDA.
Banks must complete this process within seven days of receiving the request, and the option will also be available through internet and mobile banking channels.
The draft circular is open for feedback, and the final version is expected to be implemented nationwide by March 2026.
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