With effect from September 1, 2019, Banks are required to frame Board approved policy / operational guidelines in respect of certain changes in Basic Savings Bank Deposit (BSBD) Account in the interest of better customer service. RBI on August 2, 2019, asked Banks to offer following basic minimum facilities in the BSBD Account, free of charge, without any requirement of minimum balance.
The RBI communiqué said that the BSBD Accounts shall be considered a normal banking service available to all. Therefore, banks may consider value added services to BSBDA customers such as issue of cheque book, in addition to the above minimum facilities, which may/may not be priced (in a non-discriminatory manner) subject to disclosure. While offering such additional services, banks shall not insist the customer to maintain a minimum balance. Anyhow, option of taking the additional facilities extended by the bank is left to the choice of the customer.
Beyond the above facilities, the existing instructions with regard to free transactions available for normal savings bank account in own-bank/other bank ATMs are not applicable to BSBD accounts. The minimum free withdrawals available to the BSBD Account holders can be made at all ATMs (own-bank/other bank ATMs).
Important announcements on BSBDA accounts:
It is important to note that offering of such additional facilities to the account holder does not make it a non-BSBD Account as long as the prescribed minimum services are provided free of charge. Further, the BSBDA customers are not eligible for opening any other savings bank deposit account in that bank. In case, a customer has any existing savings bank deposit account in that bank, he/she will be required to close it within 30 days from the date of opening a BSBD Account. Further, before opening a BSBD account, the bank should obtain a declaration from the customer that he/she is not having a BSBD account in any other bank.
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