At a time when people are worried about minimum balance rules, rising banking charges, and digital payment fees, the RBI has introduced a major change.
The Reserve Bank has updated the rules for the Basic Savings Bank Deposit (BSBD) account, bringing relief to millions of customers.
The biggest shift is that BSBD accounts will now be treated as a regular banking service.
Anyone can open this account with zero balance, and the rules apply to all banks and all types of savings customers.
BSBD is Now for Everyone
Earlier, BSBD accounts were mainly meant for low-income customers.
But now, RBI has announced that anyone can open this account without restrictions.
There is no minimum balance requirement, no hidden fees, and no penalties.
You can even keep a zero balance forever, and banks cannot ask you to maintain a Minimum Average Balance (MAB).
What Makes the New BSBD Rules More Customer-Friendly?
Free Checkbook and Free Debit Card
Customers will now get 25 free check leaves.
The ATM/Debit Card will also be free, with zero annual charges.
This is a major benefit because many banks used to charge yearly fees earlier.
Digital Payments Are Completely Free
All digital transactions such as UPI, NEFT, RTGS, IMPS, and online banking will be free.
RBI clarified that these transactions will not be counted as withdrawals.
4 Free Withdrawals Every Month
You will get four free withdrawals each month, including ATM withdrawals, branch withdrawals, or fund transfers.
After these four, normal charges will apply.
Internet and Mobile Banking Free
Banks must provide both Net Banking and Mobile Banking for BSBD accounts without any extra fee.
Additional Benefits and Important Rules
Existing BSBD account holders can also request these new facilities.
Banks must provide them without adding extra charges or insisting on minimum balance.
Customers will get an ATM card and checkbook only if they want them.
No bank can force customers to take services they did not ask for.
If someone wants, they can convert their regular savings account into a BSBD account.
The bank must complete this process within 7 days, free of cost.
Only one BSBD account is allowed per person, and a self-declaration is required.
There is no minimum deposit needed to open the account — you can start with zero rupees.
Full KYC is mandatory for opening a BSBD account, and partial or simplified KYC will not be accepted.
Banks will also need to display BSBD details clearly on their website, branches, and official documents.
Conclusion
RBI’s new rules make the BSBD account a powerful zero-balance option for everyone.
With free digital payments, free debit cards, free checkbooks, and no hidden fees, it is now one of the most customer-friendly banking services in India.
These changes are expected to make banking simpler, transparent, and more affordable for millions.
