Zero Balance Account: The Reserve Bank of India has expanded the scope of free facilities for Basic Savings Bank Deposit (BSBD) accounts with zero balance, providing significant relief to customers.
Zero Balance Account: The Reserve Bank of India (RBI) has made significant changes to the Basic Savings Bank Deposit (BSBD) account, providing relief to common customers. These changes include unlimited monthly deposits, free ATM or debit card usage without any renewal fees, a free checkbook of at least 25 pages per year, internet and mobile banking, and a passbook or monthly statement. The Reserve Bank has given banks seven days to make the changes to the BSBD.
What will be the limit on free withdrawals now?
Banks will be required to allow at least four free withdrawals per month, including transactions from their own ATMs and those of other banks. Under this new rule, digital payment transactions such as UPI, IMPS, NEFT, and RTGS will not be counted as withdrawals. This means that users will not be charged separately for these digital transactions.
Existing BSBD account holders can request the newly introduced features, while regular savings account holders can convert their accounts to BSBD accounts, provided they do not already have an account with another bank.
These new changes will come into effect from April 1, 2026, although banks can adopt them earlier, at their discretion. The RBI has issued new guidelines to update its Responsible Business Conduct Directions, 2025. This will officially change the framework for Basic Savings Bank Deposit (BSBD) accounts offered by banks.
Changes at a Glance
No charges will be levied for withdrawing at least four times a month.
Digital payments such as card swipe (PoS), NEFT, RTGS, UPI, and IMPS will not be counted towards the four-time limit.
A minimum 25-page cheque book per year, free internet and mobile banking, and a free passbook or monthly statement will also be available.
ATM and debit cards will be provided without any annual fee.
What is the purpose of the change?
The purpose of implementing these changes is to increase access to BSBD accounts so that people understand its benefits. These new rules will apply to all banks, including local area banks, rural cooperative banks, urban cooperative banks, small finance banks, payment banks, and commercial banks.
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