Banks must offer mobile and internet banking services even for basic savings accounts and cannot charge for deposit of cash either at the bank branch or through channels, like ATMs or business correspondents for these accounts, Reserve Bank of India (RBI) has clarified in the amended directions on basic savings bank deposit (BSBD) accounts. The new directions are effective from 1 April 2026.
RBI also rejected banks’ suggestion to fix eligibility criteria to open basic accounts based on income and profile of customer saying that fixing an eligibility criteria would undermine the objective of repositioning BSBD account as an affordable banking product available to all customers.
Banks had sought restrictions on internet and mobile banking facility in these accounts citing the possibility of these accounts being misused by money mules. But in its final directions, RBI rejected the suggestion. “Know your customer/anti money laundering guidelines and risk management as key element of KYC policy are applicable for the opening and monitoring of BSBD accounts just like any other variant of savings bank account. Since risks faced and controls subjected thereon are identical, limiting facilities in BSBD accounts on this ground is not justified,” RBI said.
Banks had also sought to be allowed to put restrictions on credits, balances, etc in deposit accounts of minors as a risk management tool which RBI has accepted clarifying that BSBD accounts opened by or operated on behalf of minors shall be subject rules governed by bank accounts in names of minors.
Banks have to extend the newly introduced free facilities upon receipt of a request from even existing customers. A holder of a BSBD account will also not be eligible for opening another BSBD account in the same bank or any other bank. Banks have suggested creating a suitable registry at ecosystem level to de-dupe BSBD accounts which the RBI is examining.
RBI also accepted a suggestion from banks to take a declaration from the customer that he / she does not have a BSBD account in any bank at the time of conversion of existing savings account to a BSBD account.
A BSBD account holder has been permitted to open another savings bank account with the same bank.
RBI also rejected banks’ suggestion to fix eligibility criteria to open basic accounts based on income and profile of customer saying that fixing an eligibility criteria would undermine the objective of repositioning BSBD account as an affordable banking product available to all customers.
Banks had sought restrictions on internet and mobile banking facility in these accounts citing the possibility of these accounts being misused by money mules. But in its final directions, RBI rejected the suggestion. “Know your customer/anti money laundering guidelines and risk management as key element of KYC policy are applicable for the opening and monitoring of BSBD accounts just like any other variant of savings bank account. Since risks faced and controls subjected thereon are identical, limiting facilities in BSBD accounts on this ground is not justified,” RBI said.
Banks had also sought to be allowed to put restrictions on credits, balances, etc in deposit accounts of minors as a risk management tool which RBI has accepted clarifying that BSBD accounts opened by or operated on behalf of minors shall be subject rules governed by bank accounts in names of minors.
Banks have to extend the newly introduced free facilities upon receipt of a request from even existing customers. A holder of a BSBD account will also not be eligible for opening another BSBD account in the same bank or any other bank. Banks have suggested creating a suitable registry at ecosystem level to de-dupe BSBD accounts which the RBI is examining.
RBI also accepted a suggestion from banks to take a declaration from the customer that he / she does not have a BSBD account in any bank at the time of conversion of existing savings account to a BSBD account.
A BSBD account holder has been permitted to open another savings bank account with the same bank.
