RBI’s big move: Here’s what your Basic Savings Bank Deposit account could offer soon

The Reserve Bank of India (RBI) on Wednesday, 1 October, announced a proposal to upgrade the Basic Savings Bank Deposit (BSBD) account, aiming to make it the standard service across all banks. The reforms are intended to create a customer-centric experience, increase access, and strengthen protection for account holders, especially targeting low-income and rural customers. Over 566 million BSBD accounts have already been opened under the Pradhan Mantri Jan Dhan Yojana, with deposits exceeding ₹2.67 trillion. The RBI stated these directions are designed to deepen financial inclusion by aligning BSBD accounts with evolving customer needs and digital banking. "The ongoing (digitisation) of the banking sector requires a BSBD account that is in sync with the customer’s evolving requirements. These directions are issued to improve customer service for BSBD account holders and enhance the usage thereof to deepen financial inclusion and (digitisation)," the RBI said.

Under the proposed rules, banks must treat the BSBD account as a regular banking service, providing mandatory basic facilities free of charge. This includes unlimited deposits, ATM or debit cards, a cheque book with at least 25 leaves annually, and free internet and mobile banking. There is no requirement to maintain a minimum balance. The RBI stated there would be "No limit on the number and value of deposits that can be made in a month." These accounts also offer at least four free withdrawals, including ATM transfers, per month.

The RBI has instructed banks to publicise BSBD account features and availability. Banks must also clearly explain the differences between BSBD and other savings accounts to prospective customers. This ensures all individuals, including those currently unbanked, can understand and access these basic financial services.

A customer can only maintain one BSBD account across the banking system. If a customer already has a savings account in the same bank, it must be closed within 30 days of opening a BSBD account. If the customer does not submit an account closure request within the prescribed period, the bank will serve a notice and provide another 30 days before closing the savings account(s).

Major digital transaction systems, such as Unified Payments Interface (UPI), National Electronic Fund Transfer (NEFT), Real-time Gross Settlement (RTGS), Immediate Payment Service (IMPS), and Point of Sale (PoS) transactions, will be available without restriction to BSBD account holders.

Banks may also offer additional services to BSBD account holders, with or without a fee, provided these are offered in a non-discretionary and non-discriminatory manner, and with full disclosures. Customers may convert an existing savings account into a BSBD account within seven days upon written request, including via internet or mobile banking. Banks must secure a declaration from applicants that they will not open another BSBD account with any other bank.

The RBI has set a compliance deadline of March 31, 2026. All BSBD accounts will be subject to standard Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures as specified in the RBI's Master Direction.

To enhance customer experience and ensure faster resolution of grievances, the RBI has instructed banks to use the Internal Ombudsman system for BSBD accounts. Rural cooperative banks will also be included under the RBI Ombudsman Scheme, offering customers quicker recourse for complaints or unresolved issues. These measures are designed to advance financial inclusion by making free digital banking accessible to a broader base of low-income and rural customers.