Current Affairs

RBI revised instructions for BSBD accounts

Current context: RBI has revised its circular on Basic Savings Bank Deposit (BSBD) accounts
RBI revised instructions for BSBD accounts
  • As per the revised circular, Banks are advised to offer basic minimum facilities free of charge without any minimum balance requirement
  • There will be no limit on number and value of deposits made in a month
  • 4 minimum withdrawals in a month along with ATM withdrawals are allowed
  • Banks are free to provide additional value-added services, like issue of cheque book
  • The customers have option of the availment of such facilities
  • No minimum balance would be required to avail such additional services
  • The BSBD account can be converted into a normal saving account only at the written request of the customer
  • The banks would be penalized under RBI Banking Regulation Act,1949, if found for non-compliance of any instruction

BSBD Accounts:

  • RBI has mandated all banks to offer BSBD accounts to those looking to open a bank account
  • In a BSBD account, no minimum balance is required to be maintained
  • These accounts are aimed to enhance financial inclusion
  • The no-frill accounts also come under BSBD accounts

Question: 

Q.1 With respect to Basic Savings Bank Deposit (BSBD) accounts, which statement is correct?
a. A minimum balance is required
b. No minimum balance is required
c. Limit on the number of deposits
d. Banks charge for additional services
RBI revised instructions for BSBD accounts RBI revised instructions for BSBD accounts Reviewed by Neha on July 16, 2019 Rating: 5

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