The Reserve Bank of India (RBI) made an important announcement during the festive season.
On October 1, RBI Governor Sanjay Malhotra said that holders of Basic Savings Bank Deposit Accounts (BSBDA) will now have access to digital banking services.
Until now, online and mobile banking was only available for regular savings accounts.
This change means that millions of basic account holders can now use internet and mobile banking, making transactions more convenient.
What the RBI Governor Said
Governor Malhotra highlighted that providing digital banking facilities for BSBD accounts will greatly benefit the public.
People will be able to access banking services from home, which is seen as a major step towards financial inclusion—bringing more people into the banking system.
Currently, BSBD accounts allow deposits and withdrawals, and money can be added through electronic payment channels.
Banks also provide free ATM cards to account holders. Previously, these accounts did not have access to digital banking services.
Millions Will Benefit
BSBD accounts were created to ensure a larger segment of the population has access to banking services.
These accounts offer basic banking services free of charge, and customers do not need to maintain a minimum balance.
Governor Malhotra emphasized that as the banking sector continues to digitize, it has become necessary to extend digital services to BSBD account holders to meet customer needs.
Repo Rate Update
In the monetary policy announced on October 1, the RBI did not reduce the repo rate. It also did not cut the rate in August.
However, in 2025, the RBI reduced the repo rate by 100 basis points (1%) in three steps—February, April, and June—bringing it down from 6.5% in January to 5.5%.
This reduction has made home and auto loans cheaper. Analysts estimate that the RBI may reduce the repo rate by 25 basis points in its December monetary policy.
