Revised BSBD A/C norms: Provision of digital banking and no fee on ATM card

Savings Bank Account Holders to Benefit from RBI's Latest Amendments

The Reserve Bank of India (RBI) has introduced several changes to the Basic Savings Bank Deposit (BSBD) accounts, making them more attractive to Savings Bank (SB) account holders.

Key Amendments

• No issuance and annual renewal fees on ATM card or ATM-cum-Debit Card for BSBD account holders.
• Free mobile and internet banking facility for BSBD account holders.
• BSBD account holders will be provided with a cheque book with a minimum of 25 cheque leaves per year.

Conversion Process

SB account holders can convert their existing accounts to BSBD accounts by submitting a written request to the bank. The bank shall convert the account within seven days of receiving the request. This option will also be available through digital channels.

Restrictions on BSBD Accounts

• BSBD account holders will not be eligible to open another BSBD account in the same bank or any other bank.
• Restrictions on free withdrawals, including cash withdrawals, transfers, and ATM transactions.

Benefits of BSBD Accounts

BSBD accounts offer several benefits, including:

• No annual fee for ATM card or ATM-cum-Debit Card.
• Free mobile and internet banking facility.
• Free cheque book with a minimum of 25 cheque leaves per year.
• No restrictions on the number and value of deposits that can be made in a month.

Expert Opinion

Banking expert V Viswanathan opined that any existing SB account holder would be willing to convert one of their operating accounts to a BSBD account and operate all their transactions through this account.

Statistical Highlights

As at FY24-end, the banking system had 70.59 crore BSBD accounts, with outstanding of ₹2,99,795 crore, per RBI data. All scheduled commercial banks had SB deposits aggregating ₹63,41,043 crore as at FY24-end.